US Expands Civil Forfeiture in PrivatBank Case

Authorities in the United States are pur­su­ing for­fei­ture of an Ohio prop­er­ty alleged­ly acquired with funds embez­zled from one of Ukraine’s largest banks as part of a mul­ti-bil­lion dol­lar finan­cial scandal.

Will Neal, OCCRP, 04 January 2021,

The two owned PrivatBank, once Ukraine’s largest com­mer­cial lender, pri­or to its nation­al­i­sa­tion in 2016, and are alleged to have abscond­ed with at least US$5.5 bil­lion in deposits made by a third of the country’s pop­u­la­tion, equiv­a­lent to around five per­cent of its total GDP.

According to the DoJ, Kolomoisky and Boholiubov used fraud­u­lent loans and lines of cred­it to illic­it­ly extract funds from the bank, laun­der­ing a por­tion of this through the lender’s branch in Cyprus, before trans­fer­ring the mon­ey to the United States.

Once the funds reached the U.S., Mordechai Korf and Uriel Laber, asso­ciates of the Ukrainian busi­ness­men, alleged­ly chan­neled the cash through a web of enti­ties in order to pur­chase “hun­dreds of mil­lions of dol­lars in real estate and busi­ness­es across the country.”

The total val­ue of prop­er­ties already sub­ject to for­fei­ture pro­ceed­ings stands at $60 mil­lion, with author­i­ties adding that their inves­ti­ga­tion into Kolomoisky and Gennadiy’s U.S. assets is still ongoing.

OCCRP.org

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