Misappropriation of USD 62 mln from Zorya-Mashproekt SE: 5 suspects (PHOTOS)

On Sep. 26, 2023, NABU and SAPO, with the operational support of the Strategic Investigations Department of the National Police, served former executives of the State Enterprise Gas Turbine Research and Production Complex Zorya-Mashproekt as well as the director of a non-resident private company with suspicion papers. They are charged with organizing a group to embezzle funds from the state enterprise worth USD 62 million. 

The suspects are:

• four former Zorya-Mashproekt general directors;
• the director of a non-resident private company.

The actions of the suspects fall under Part 5 Art. 191 of the Criminal Code of Ukraine, while one of the ex-directors of the state enterprise and the director of a non-resident private company are additionally charged under Part 3 Art. 209 of the Criminal Code of Ukraine.

The investigation found that the executives of Zorya-Mashproekt, a state exporting enterprise, organized a fund misappropriation scheme. To this end, they entered into a series of agency agreements with a non-resident company, under which it was supposed to search for and negotiate with potential buyers of the enterprise's products the conclusion of relevant foreign economic contracts.

As a result, in 2013-2018, the enterprise unjustifiably transferred USD 61.98 million to the accounts of the non-resident company as payment for alleged agency services. The enterprise incurred losses for this very amount, which was confirmed by a forensic economic examination. The funds were further legitimized through the accounts of foreign companies controlled by the former executives of Zorya-Mashproekt.

During the investigation, NABU and SAPO sent requests for international legal assistance to more than 20 foreign jurisdictions to obtain evidence of the illegal activities of the scheme participants. Thanks to the information received from the competent authorities in India, it was possible to confirm the fictitious nature of the services, and information from Switzerland and Latvia allowed tracing the laundering of illegally obtained funds from Zorya-Mashproekt amounting to USD 795,000 and over EUR 222,000. International cooperation in the proceedings is ongoing.

The investigation is underway, other potential participants in the crime are being identified.