The ESBU and SSU exposed a 68 million UAH embezzlement scheme at a regional energy company organized by a sanctioned businessman

 Detectives of the Main Detective Unit of the Economic Security Bureau of Ukraine, in cooperation with the Security Service of Ukraine, have uncovered a scheme to misappropriate funds from a regional energy distribution enterprise. Notices of suspicion have been served to four individuals, including a sanctioned businessman who is the ultimate beneficial owner of the company.

The investigation revealed that between 2020 and 2024, the group orchestrated a scheme to seize funds from the energy provider located in one of Ukraine’s regions. The company is of strategic importance, with 25% of its shares owned by the state through the Ministry of Energy of Ukraine.

According to the investigation, the fraudulent activities resulted in losses of nearly UAH 68 million.

The pre-trial investigation is ongoing to establish all the circumstances of the crime and identify any other individuals involved in the illegal activities.

The sanctioned businessman, who acts as the ultimate beneficial owner of the company, orchestrated a scheme to illegally misappropriate corporate funds in collusion with former and current executives, as well as the financial director.

To facilitate the scheme, the company created a position for an «Advisor to the Chairman of the Board» and formally appointed the beneficial owner to the role. Subsequently, he accrued and was paid salaries and bonuses based on employment contracts and time sheets. These payments were made in violation of the National Energy and Utilities Regulatory Commission resolutions regarding tariffs under incentive-based regulation.

As a result of this scheme, the enterprise suffered losses totaling nearly UAH 68 million. The extent of the damage has been confirmed by a forensic economic expert report.

The suspects' actions have been classified under Part 5 of Article 191 of the Criminal Code of Ukraine (misappropriation of property on an especially large scale through abuse of official position).

Three of the suspects have been served with notices of suspicion, and motions have been filed with the court to seek a preventive measure in the form of detention.

The Prosecutor General's Office is providing procedural guidance in the case. Operational support was provided by the Security Service of Ukraine. The pre-trial investigation is ongoing.