UAH 776 million grain scheme: organized criminal group exposed (PHOTOS)

NABU and SAPO uncovered a large corruption scheme involving the misappropriation of grain from the State Food and Grain Corporation of Ukraine (SFGCU). The scheme involved former top officials of the state corporation and representatives of a foreign company.

As established, in 2021, SFGCU management signed four export contracts with a foreign company for the supply of feed corn.

Although the contracts required full prepayment before ownership of the grain was transferred, the buyer company got the original bills of lading*, which allowed them to unload the ships and use the grain without paying for it.

To hide this and make it look like the SFGCU still controlled the grain, forged copies of the bills of lading with fake signatures and stamps were kept at the corporation. As a result, SFGCU lost almost 106,000 tonnes of grain worth UAH 776 million ($28.8 million).

The organizers laundered the proceeds from the stolen grain through continuous transfers between bank accounts to mix them with legitimate funds, as well as through the purchase of raw materials and assets for controlled companies.

Suspects:

• the former chairman of the board of the SFGCU;
• the former director of the Trading Department of the SFGCU;
• the director and ultimate owner of the foreign company;
• a trusted representative of the foreign company;
• an accomplice.

Legal qualification: Part 5 of Article 191, Part 3 of Article 209, and Part 3 of Article 358 of the Criminal Code of Ukraine

*a shipping document that proves ownership; without the original, the cargo cannot be collected at the port