The US extends civil forfeiture in the PrivatBank case

US authorities are pursuing the forfeiture of a property in Ohio that was allegedly acquired with funds embezzled by one of Ukraine’s largest banks in a multi-billion dollar financial scandal.

Head office of PrivatBank, whose former owners Kolomoisky and Boholiubov is alleged to have stolen at least $5.5. Billion (Credit: Olga Vaganova, CC SA-BY 3.0)

The Justice Department admitted This known last week filed a civil foreclosure complaint against an office tower in Cleveland, adding two more such properties in Texas and Kentucky that were allegedly purchased by employees of the bank’s former owners, Ihor Kolomoisky and Gennadiy Boholiubov.

The two owned the PrivatBank, once Ukraine’s largest commercial lender, before its nationalization in 2016, and is said to have fled a third of the country’s population with at least $ 5.5 billion in deposits, which is around five percent of its total GDP.

According to Information from DoJ, K Olomoisky and Boholiubov used fraudulent loans and lines of credit to illegally extract money from the bank, which laundered part of it through the lender’s branch in Cyprus, before transferring the money to the United States.

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once the funds reached the US ., Mordechai Korf and Uriel Laber, employees of Ukrainian businessmen, allegedly directed the money through a network of companies to acquire “hundreds of millions of dollars worth of real estate and businesses across the country.”

The total value of the property that has pending forfeiture is $ 60 million. Authorities added that their investigations into Kolomoisky and Gennadiys U. assets are still ongoing.

OCCRP / TechConflict.Com

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