Elite Center: A financial pyramid is built for a long time so that it can be well covered later

In recent years, Ukraine has been literally overwhelmed by a wave of crimes related to financial fraud, in simpler terms, scams to extort money from ordinary citizens. But in most cases, these matters, even reaching the courts, are "hushed up," and their main culprits are covered by police, prosecutors, and judges, naturally for a certain "reward." Let’s recall the most notorious and widespread scams of recent times.

Since 2010, the trial concerning the notorious "Elita Center" scam has been ongoing, which has become a household name for all real estate-related financial scams. Over the years, the criminal case has dissolved into 700 volumes, none of which mention the whereabouts of the stolen money. However, there are 1,700 victims in the case who lost more than 384 million UAH.

The financial scam scheme was developed by the main suspect Shakhov-Volkonskyi. In Kyiv, he initially invested in a group of construction companies "Elita-Center" with money. These companies acquired 11 land plots on the secondary market in the capital. On three of them, multi-story buildings began to be constructed while actively advertising the future "elite" houses. A square meter of housing in "elite new buildings" was offered for $900, whereas in similar new buildings, a "square" cost about $1500. Investors who paid the full cost of the under-construction apartment in advance received discounts.

The low price of "elite housing" caused a buyer’s rush; people flocked to Volkonskyi, including corrupt officials. Among them were a presidential advisor, the head of a regional police department, several prosecutors, and SSU officers. During the 2004-2005 period, almost 1,500 of such "lucky ones" accumulated. Each invested from $30,000 to $100,000. As witnesses later revealed during interrogations, "investors" often brought money in cash, in bags.

Meanwhile, the businessmen from "Elita-Center" sold the same imaginary apartment to two or even three applicants—some investors accidentally discovered this. But the management quickly "sorted out" the situation, blaming it all on a computer error. When overlaps occurred and the dissatisfied started raising noise, he personally extinguished the scandal in its infancy. For instance, a certain lady invested $50,000 into "Elita-Center," and he returned $60,000.

If Oleksandr Shakhov is proven guilty, he faces up to 15 years in prison. If... The investigation materials have already been returned for further investigation three times—the court constantly pointed out gaps. But when the new CPC came into force and additional investigation was canceled, the judge found a new reason not to judge Volkonskyi and Co.

No less high-profile is the case involving the once-popular pastor of the "Embassy of God" church, Sunday Adelaja. In 2009, the head of the Ministry of Internal Affairs of Ukraine, Yuriy Lutsenko, accused Adelaja of fraud and announced the start of an investigation into the creation of the "King’s Capital" financial pyramid, amounting to 1.5 million hryvnias. During investigative actions, a forensic-psychological examination of Sunday Adelaja’s methods was even conducted.

Vitaliy Yarema, who then headed Kyiv’s police, stated that fraudsters had taken $100 million from "King’s Capital" and $8.5 million from "LeonBank Ukraine" abroad.

According to the victims’ lawyer, more than 3,000 people suffered from the activities of "King’s Capital," and the total damage nationwide amounted to about 1 billion hryvnias. The total volume of materials related to the "King’s Capital" case totaled 100 volumes. On July 28, 2011, the General Prosecutor’s Office of Ukraine sent the case to the Kyiv Appellate Court, and on September 13 of the same year, its consideration began in the Dnipro District Court of Kyiv.

However, the case had to be split because, due to the large number of victims, it was impossible to send all the materials at once. In July of last year, it was reported on the Prosecutor General’s website that another criminal proceeding against 13 persons, who seized citizens’ funds totaling almost 150 million UAH, was sent to court.

The preliminary investigation established that these persons, from May 2006 to November 2008, using legal entities "JC & AA Kings Capital Limited," private enterprise "Kings-Capital," LLC "Kings-Capital," legal union "Thirteenth Salary," VOO "Spirituality and Prosperity," and credit union "Business Cooperation," fraudulently seized the funds of almost 3,500 citizens totaling over 140 million UAH. Whether Adelaja is one of the accused in the case, the OPG does not report.

Equally convoluted is the story of the "Ostrovskyi-Kuzmych case." He is suspected of organizing a nationwide scam from which more than 6,000 residents of Ukraine suffered losses exceeding 40,000,000 UAH.

After the first detention in June 2013, Ostrovskyi and his accomplices were released on bail of 1 million UAH, after which he fled from the investigation and, while on the run, opened two more companies—"Credit 24" (Kyiv) and "Savings Office 14," which swindled people with even greater scope, offering refinancing of existing loans and "very profitable" deposits.

The condition for obtaining a loan in this bank was the mandatory payment of the first installment (the amount depended on the size of the loan). In reality, having paid the installment, people didn’t receive a loan, and the amount paid was not returned.

In December 2013, the forces of the UBOS of Transcarpathian region detained the fraudster again, and in March of this year, the Transcarpathian region prosecutor’s office transferred the case to court. However, according to an activist of the "Anti-corruption" public organization, a representative of citizens affected by the activities of fake creditors, Bohdan Khaustov, there are interested parties in high positions prepared to "dissolve" the case for money.

As shown by practice and the experience of the first detention, the case may take an unexpected turn, and Ostrovskyi-Kuzmych may be released, as he and the party lobbying for these interests hope. First of all, the case was filed against only one of a dozen fake credit firms—private enterprise "B.A.N.K. UA," and only against six figures out of a hundred employees of the fraudulent company. In almost all cases, the police pointed the finger at the prosecutor’s office, which did not see any criminal wrongdoing by the fraudsters, even with the finalized court decisions that revealed the fraudulent scheme and proved the deception with the aim to misappropriate the initial contribution and not provide money.

Rumors also circulate in the region that, thanks to Ostrovskyi-Kuzmych’s money, the former Transcarpathian prosecutor bought himself a new "Jaguar," which is unsurprising since legends are told about Ostrovskyi’s millions.

Prosecutor’s office’s delays are also astounding with regards to such companies as "PAT "Renaissance Credit," "B.A.N.K. "People’s," "TPF "European Credit," "Credit Group," "TPF Active," "TRUST BANK," a couple of dozen people who wander freely and continue to earn money by releasing Ostrovskyi, as well as the existence of two companies—"Credit 24" and "Savings Office 14" that operated regardless of his location. Most likely, this money went to deal with issues related to his "release."

The "Prosecutor’s Truth" has questions in this regard:
- When will the prosecutor’s office be able to see any of these high-profile cases to their logical conclusion, as a result of which a large number of people suffered?
- How much does it cost to avoid investigation for numerous financial violations with which housing is currently being built?
- Why does the OPG openly show its inaction regarding fictitious financial institutions, and even more, provide them with assistance?