Ukraine law enforcement expose series of criminal schemes

A series of criminal schemes were reported to have
been undermined in the last week by law enforcement authorities. Most recently,
Security Service of Ukraine (SBU) officers arrested on July 7 four members of
an Odesa organized crime gang in the middle of an alleged kidnapping attempt,
its press service reported that day. The gang consists of more than 10
residents of Odesa, who are controlled by a figure abroad. The kidnapping was
aimed at extorting money from the victim, a local entrepreneur. The suspects’
residences were searched, where evidence of criminal activity was found.

The SBU reported on July 2 to have exposed and blocked
an alleged illegal scheme in which tax officials and nearly 400 currency
converter firms manipulated value-added tax credits at a cost to the state of
an estimated UAH 2 bln in monthly tax revenue in 2019-2020. The manipulations
included the illegal interference of information systems, which distorted their
information processing, the SBU press service said. The crime’s investigation
involved more than 120 searches and the confiscation of documents, computer
hardware, memory cards and stamps from about 60 enterprises. About UAH 1.5 mln
in cash was also confiscated, while more than UAH 100 mln at the bank accounts
of these enterprises have been frozen. About UAH 587 mln has also been blocked
on the accounts of electronic payers of the value-add tax. As a result of the
SBU’s efforts, the state budget gained an additional UAH 6.4 bln in revenue in
May and June, the press service said. It made no mention of arrests of suspects.

The SBU exposed a criminal scheme in which officials
at the Zhytomyr Armored Tank Factory allegedly profited from unnecessary
repairs at inflated prices that they ordered for radiation and chemical equipment,
its press service reported on July 2. The scheme occurred in the spring of 2018
in which factory officials signed an agreement for repairs from a Lviv
scientific association at a value of UAH 2.5 mln. During their investigations,
which included seven searches, SBU officers found that the repairs could have
been performed at the state enterprise. During seven searches at the factory
and residences, they confiscated military hardware and financial documents that
confirmed price-gouging at more than 60%. The criminal case is based on abuse
of authority.

Meanwhile, the State Bureau of Investigations (DBR)
reported on July 6 its officers arrested a human resources official at the SBU
for demanding a bribe of USD 3,000 in exchange for providing employment. The
official was caught receiving a USD 1,000 portion of the bribe in a string
operation. He faces five to 10 years imprisonment.

Zenon Zawada: These are positive examples of corruption and crime being exposed by
Ukrainian law enforcement. But these arrests won’t be effective in deterring
crime if the arrested aren’t subject to a court trial and verdict from a judge.
A common criminal scheme in Ukraine involves paying law enforcement officials a
portion of the proceeds gained from a criminal scheme in order avoid
punishment.