Ukrbudinvestbank’s shareholders are on the wanted list: BES exposes large-scale fraud
2 July 08:47
The Bureau of Economic Security of Ukraine has notified the shareholders and the head of the cash operations department of the Kyiv regional directorate of Ukrbudinvestbank, which was liquidated in 2023, of suspicion of bringing the financial institution to insolvency and causing about UAH 600 million in material damage to depositors and creditors. This is reported by "Komersant Ukrainian" with reference to the BES press service.
“The investigation has established that the participants of the scheme for a long time issued funds to individuals and legal entities without official documents, reflected in the cash accounting documents information on cash receipts from bank customers, without the actual receipt of such funds,” the BES said in a statement illustrated by a photo of the central office of Ukrbudinvestbank in Kyiv.
Financial fraud: how the bank lost millions
According to the investigation, the bank’s officials not only falsified cash documentation but also submitted deliberately false information to the National Bank and other regulatory authorities about the real financial condition of the institution. They also deliberately underestimated the amount of shortages in audit reports, and money was actually withdrawn from circulation without proper accounting.
As a result of the deteriorating financial condition, the National Bank of Ukraine introduced a temporary administration, which found cash shortages in the Kyiv Regional Directorate’s safes in the following amounts
- over UAH 153 million
- almost USD 5.8 million
- 42.5 thousand euros.
In hryvnia equivalent, this is more than UAH 365 million – only one component of the total losses of more than half a billion.
As part of the investigation, BES detectives have already
- conducted more than 25 interrogations
- carried out a number of inspections
- documented violations confirmed by economic expertise and an internal official investigation.
The property of the majority shareholder has been seized, with its value estimated at approximately UAH 40 million.
The indictment against the head of the cash operations department has already been submitted to the court.
The bank’s shareholders have been put on the wanted list.
Civil lawsuits have also been filed against the suspects in the amount of about UAH 400 million.
Investigations into other suspects are ongoing.
What is known about Ukrbudinvestbank
Joint Stock Company Ukrbudinvestbank accounted for 0.04% of the total volume of solvent banks in Ukraine.
The ultimate beneficial owner of the bank is Svetlana Demyanenko. She owns a 74.93% stake, according to Youcontrol data.
Ukrbudinvestbank is part of the group of the same name, in which Demyanenko is a key person, Youcontrol says. The group also includes FC Financial World LLC, FC Conversion LLC, First Collection Company LLC, Dream House Housing and Construction Cooperative, and Authoritet Construction Group.
