Kyiv uncovers large-scale real estate fraud scheme in Pechersk – prosecutor general
A large-scale real estate fraud scheme has been uncovered in a new residential building in Kyiv’s Pechersk district, in which apartments that already had owners were sold, Prosecutor General Ruslan Kravchenko has said.
Kyiv investigators have uncovered a vast property fraud scheme in Pechersk, a district in the capital, according to Prosecutor General Ruslan Kravchenko. The scheme, orchestrated by a former Dnipro City Council deputy, saw the sale of apartments that already had owners, with the same properties being sold twice. The prosecutor alleged the fraudsters altered technical specifications of the premises, used falsified documents, and re-registered property rights to new buyers.
Most apartments were originally sold to investors, while another 50 belonged to a state bank. The scheme's participants sold these 50 apartments, despite the state bank's ownership, by changing the technical specifications of the properties and using forged documents. This resulted in losses to the state bank exceeding UAH 164 million.
Additionally, nine more apartments, already registered to individuals, were sold through the same fraudulent method. The prosecutor noted that to complicate the investors' attempts to establish their rights, the scheme's perpetrators altered the residential complex's legal address, and the building, originally 27 stories, became 32 stories post-completion.
The total established losses exceed UAH 175 million. The funds obtained illegally were allegedly used to invest in property acquisitions and other construction projects. Nine people, including the organizer and eight accomplices, have been notified of suspicion, facing charges of fraud, legalization of criminally obtained property, and use of forged documents.
The prosecutor has stated that this may not be the full extent of the scheme, as they are investigating other possible double sales and establishing the complete number of victims and the movement of illegally obtained funds.
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