Flats that already had owners were being sold: scheme causing losses of 175 million hryvnias has been uncovered in Kyiv, - Kravchenko. VIDEO
A large-scale property fraud scheme involving a new-build development in Pechersk has been uncovered in Kyiv.
This was reported by Prosecutor General Ruslan Kravchenko, according to Censor.NET.
Details
According to the investigation, the scheme was organised by a former member of the Dnipro City Council.
"He acquired corporate rights to a group of companies that owned several unfinished properties in the centre of the capital, including a residential complex in Pechersk.
At that time, most of the flats in the building had already been sold to investors. Property rights to a further 50 flats belonged to one of Ukraine’s state-owned banks, following a court ruling. Only a portion of the premises remained available," the statement reads.
However, those involved in the scheme managed the entire building as if the previous owners did not exist, noted Kravchenko.
"To sell the flats, the rights to which belonged to the state-owned bank, they altered the technical specifications of the properties and used forged documents. In this way, 50 flats were transferred to third parties. The state-owned bank’s losses exceeded 164 million hryvnias.
Using a similar scheme, a further eight flats were resold, the property rights to which already belonged to private individuals. People paid for the flats, but subsequently the same square metres were registered in the names of other buyers.
To further complicate the process of establishing the rights of the defrauded investors, those involved in the scheme changed the legal address of the residential complex. And the 27-storey building, as originally planned, became a 32-storey building upon completion," noted the Prosecutor General.
The total amount of established losses is over 175 million hryvnias.
The funds received were converted into cash, channelled through controlled companies, and invested in property purchases and other construction projects.
Suspicions
Nine individuals have currently been served with notices of suspicion: the organiser and eight accomplices.
Their actions are classified asfraud, money laundering, and the use of forged documents.
The issue of imposing preventive measures is currently being considered.
At the same time, the investigation is verifying information about other possible double sales, establishing the full number of victims and tracing the flow of illegally obtained funds.
