Detectives of the Bureau of Economic Security (BEB) together with the National Police exposed a giant “conversion center” through which about UAH 18 billion of shadow funds passed. The international network served hundreds of companies, helping them minimize taxes and legalize dubious goods. At the same time, it covered Ukraine, the European Union and the UAE. This was reported by Noviny.LIVE, the press service of the Bureau of Economic Security reported, the PromPolitInform portal reports.
BEB exposed a large-scale tax evasion scheme
The Bureau of Economic Security of Ukraine has eliminated one of the largest tax evasion schemes, which has been operating since at least 2020. The criminal organization used more than 500 controlled structures — 100 fictitious enterprises and about 400 individual entrepreneurs — to form an artificial VAT credit.
More than 200 client companies across Ukraine used the center’s services to cash in and legalize petroleum products of dubious origin.
International channels and crypto assets
The scheme was integrated into the financial flows of the European Union and the UAE. To transfer capital abroad, the dealers used 20 non-resident companies and an extensive network of exchangers. To make it more difficult to track the money, some of the funds were converted into cryptocurrency.
“The organizer of the scheme is a man who is currently hiding abroad. He coordinated all activities and involved several accomplices in it. Each of them was responsible for different areas: financial transactions, accounting, company registration and selection of front persons,” the report says.
Search results and suspicions
During 40 searches in Kyiv, Odessa, Poltava and Chernihiv regions, law enforcement officers seized over 5 million UAH, 300 thousand USD, 20 thousand euros, 40 seals and 5 cars. Currently, suspicions have been reported to the organizer (in absentia), the financial director, accountants and other members of the group.
“Only according to individual established facts, tax evasion in the amount of over 56 million UAH has been documented,” the department noted.
Four participants in the scheme have been detained, three have already been sent to custody. Currently, measures are being taken to put the organizer on the international wanted list. The pre-trial investigation under the leadership of the Poltava Regional Prosecutor’s Office is ongoing.
On Monday, April 27, it was also reported that a large-scale scheme was uncovered in Ukraine, where money was laundered on the repair of military equipment. Participants in the illegal scheme “brought into the shadows” more than 576 million hryvnias.
And in early March, the BEB exposed a businessman subject to sanctions and his partner. They withdrew about 68 million hryvnias from energy companies.
