The ex-head of Arkada Bank and the developer were suspected of embezzlement of depositors’ money
The former head of the Arkada bank and the developer were informed of suspicion of embezzlement of 110 million hryvnias of investment funds. About this informs Kyiv police press service.
The investigation found out that in 2014 Arkada Bank signed a contract with a construction company to build a residential complex in Darnytsia district of the capital. Investors’ funds were kept in a special fund under the control of the bank and were to be used exclusively for construction.
However, in 2018, the ex-chairman of the bank’s board together with the general contractor implemented a fraudulent scheme. They spent more than 110 million hryvnias of investors to purchase corporate rights in a controlled construction company, justifying it by “preventing risky situations in the future.”
At the time of signing the agreement, the real value of these rights was only 1 hryvnia, as the company had significant debts and had filed for bankruptcy two months before. As a result, the residential complex was never built, and the investors were left without housing.
Currently, the accused have been charged with suspicion, they face up to 12 years in prison with confiscation of property.
