The police of the Chernihiv Region have exposed officials in illegal enrichment: from rent-seeking
For several years, the manager of the utility company deliberately understated the rent for the utility property.
The police conducted searches on the territory of one of the communal enterprises in Chernihiv and exposed an illegal enrichment scheme organized by officials. They were engaged in both the illegal arrangement of a farm for cryptocurrency mining and scams with the lease of communal property. About this reported National Police of Ukraine.
How did the scheme work?
Investigators found that the head of the utility company, which manages more than 50 buildings, deliberately understated the rent for utility property for several years. Together with other officials of the enterprise, he organized a scheme that allowed renting out premises at prices artificially lowered by 10-15 times.
The property was registered at an auction, where the only participant was the company registered as an assistant director. After receiving the property for rent at discounted prices, it was offered to legal entities or individuals for sublease at market prices that were ten times higher than the initial rent. The income from this difference was directed to the LLC controlled by the director of the enterprise. The funds obtained from these frauds were distributed among all members of the criminal group.
During the searches, the police seized documents of the “black” accounting department and other evidence confirming illegal activities.
Mining farm as an additional income
In addition, in one of the technical premises, the police discovered a crypto-currency mining farm. According to the investigation, the director of the utility company created an installation with video cards hidden behind the elevator, connecting it to the company’s power grid. The official earned approximately $1,300 per month from cryptocurrency mining, causing significant losses to the utility through power theft. This illegal activity continued for at least a year.
The police seized specialized mining equipment, software, as well as documents and draft records with calculations of illegal profits.
Legal consequences
Officials are accused of abuse of power or official position, which led to serious consequences. They face punishment in the form of imprisonment for a term of 3 to 6 years, as well as deprivation of the right to hold certain positions and the imposition of a fine.
The pre-trial investigation is ongoing, and the police continue to collect evidence and identify all participants in the scheme.
