The Security Service of Ukraine and the Office of the Prosecutor General have uncovered a large-scale scheme to embezzle assets of Motor Sich JSC. The investigation established that the perpetrators illegally appropriated a controlling stake in the state-owned enterprise and then sold it for USD 650 million.

As a result of the joint investigation by the SSU, the Office of the Prosecutor General, and the law enforcement agencies of the Principality of Monaco and the French Republic, the son of the former president of Motor Sich was apprehended in Monaco. He and his father are suspected of embezzling assets from the industrial giant.

Before the start of the full-scale war, the son helped his father to appropriate the company’s shares and then sell them to third parties.

To do this, the then head of Motor Sich organized an inventory of the company’s assets, artificially lowering the value of its shares.

He then purchased 65% of the securities at a significantly reduced price and subsequently transferred most of them to six offshore entities owned by his son.

To legalize the stolen assets, the perpetrators sold them to foreign companies and used the proceeds to purchase luxury real estate in the EU.

During the international investigation, simultaneous searches were conducted at the suspect’s residence in a coastal villa in Monaco and at the homes of affiliated persons in Zaporizhzhia.

Security Service investigators notified the son of the former Motor Sich president of suspicion under Article 209.3 of the CCU (legalization (laundering) of property obtained by criminal means, committed by an organized group on an especially large scale).

The suspect faces up to 12 years in prison with confiscation of property.

The former head of Motor Sich, who is currently in custody on charges of cooperation with russia, has also been notified of suspicion. His crimes have been additionally qualified under the Articles of the CCU:

• 191.5 (misappropriation of property through abuse of official position, committed on an especially large scale, by an organized group);
• 27.3, 209.3 (organization, legalization (laundering) of property obtained by criminal means, committed by an organized group on an especially large scale).

The operational and investigative actions were carried out under the procedural supervision of the Office of the Prosecutor General.