BES sends UAH 14.5 mln fortification wire embezzlement case to court
Detectives of the Bureau of Economic Security (BES) have completed an investigation and sent to court an indictment against three members of an organized group who embezzled almost UAH 14.5 million of budget funds in buying raw materials for protective barriers in Zaporizhia region, the bureau said on its website on Monday.
The Ukrainian Bureau of Economic Security (BES) has concluded an investigation and forwarded a case to court concerning the embezzlement of nearly UAH 14.5 million in budget funds. According to the bureau, three members of a criminal organization were accused of misappropriating the funds to purchase raw materials for protective barriers in the Zaporizhia region.
The scheme came to light when a state enterprise in the penitentiary system signed a contract with Zaporizhia Regional State Administration's Capital Construction Department in January 2024 to supply 'Yehoza' low-visibility obstacles and barrier lines. The investigation revealed that the former director of the enterprise orchestrated the fraudulent scheme in collaboration with a commodity expert and the head of a private company.
The investigation uncovered that the group members falsified data on the cost of wire in fictitious documents while purchasing raw materials from producers at market prices. They then transferred the difference to controlled entities' accounts without actual delivery of goods. The embezzlement took place between February and December 2024, resulting in UAH 14.5 million taken unlawfully.
The defendants' actions violated Part 5 of Article 191 and Part 1 of Article 366 of Ukraine's Criminal Code, which deal with misappropriation and embezzlement of property by abusing office on an especially large scale and official forgery, respectively. The Security Service of Ukraine (SBU) and the State Criminal Executive Service also contributed to exposing the scheme, with procedural supervision overseen by the Office of the Prosecutor General.
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