Former top tax official ran 'conversion center' with $36 million shadow turnover — SBU
The Security Service of Ukraine (SBU) detained a former deputy head of the State Fiscal Service suspected of organizing a “conversion center” that laundered over 1.5 billion hryvnias ($36.3 million), primarily funds stolen from the state budget, the SBU reported on Friday.
While authorities did not name the suspects, sources cited by hromadske identified the main figure as Yevhen Bambizov.
The investigation revealed that the former official, now working as a lawyer, involved four accomplices, including two accountants and the head of an affiliated company responsible for legitimizing and cashing out illegal profits.
The SBU noted that the “conversion center’s” main clients were commercial entities performing contract work and services for budget institutions, attempting to illicitly siphon public funds.
To obscure the trail of illicit financial operations, the group created dozens of front companies, most of which conducted business only on paper.
According to the prosecutor’s office, 14 fictitious importer firms and about 80 “transit” entities were established, with transactions totaling over 1.5 billion hryvnias ($36.3 million) between 2023 and 2025.
The suspects rented an office in Kyiv to plan and execute their scheme, meet clients, and store shadow documentation. During searches, authorities seized illegally obtained cash, seals of fictitious firms, bank cards, computer equipment, and financial records evidencing the scheme.
All five suspects have been detained and face charges under two articles of Ukraine’s Criminal Code:
- Part 3, Article 212 (tax evasion);
- Part 3, Article 209 (legalization of criminally obtained property).
They face up to 12 years in prison with property confiscation.
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