Fraud Scheme in Modular Housing Construction in Kyiv Region

According to law enforcement reports, a company was contracted to build 10 modular houses for residents of the Kyiv region who lost their homes due to the Russian invasion in 2022. Over 10.4 million hryvnias were allocated by one charity organization for these works. However, when it was time to report on completed works, the entrepreneur claimed that all objects were built, although only three were actually constructed.
The scheme to misappropriate charitable funds was uncovered by investigators from the Podil Police Department in Kyiv together with the Security Service of Ukraine (SBU).
The investigation revealed that the director of the construction company entered into a contract with the charity organization for the manufacture and installation of ten modular houses in the village of Moschun, Kyiv region. Before the works began, the charity organization transferred over 10.4 million hryvnias to the contractor, expecting the construction to be completed by the end of 2022.
However, as of 2025, the entrepreneur had fully built and commissioned only three houses out of ten planned. Nevertheless, he signed reports on completed works with false data regarding volumes and costs. As a result, the charity fund incurred losses of nearly 4 million hryvnias.
Investigators, under the procedural guidance of the Podil District Prosecutor's Office, informed the suspect of the charges under Part 5 of Article 191 of the Criminal Code of Ukraine — misappropriation of another's property through abuse of office in wartime conditions and in particularly large amounts. The penalty under this article provides for up to twelve years of imprisonment, with deprivation of the right to hold certain positions or engage in certain activities for up to three years and confiscation of property.
Additionally, in July of this year, investigators announced suspicion against another contractor's manager responsible for setting up foundations, septic tanks, and plumbing for these same houses, whose actions were classified as inflation of costs and volumes of completed works amounting to about half a million hryvnias.