Author Topic: $1.7 billion PrivatBank Funds Skimmed Offshore / Phony Loans  (Read 315 times)

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Offline Reggie

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EXCERPTS OF ARTICLE:  FOR FULL VERSION

https://www.reuters.com/article/us-ukraine-privatbank-insight/ukraine-money-go-round-how-1-7-billion-in-bank-loans-ended-up-offshore-idUSKBN1FD0G5

At the time of PrivatBank?s nationalization, the central bank says the lender had a $5.6-billion hole in its balance sheet caused by shady lending practices, with almost all of its corporate loans made to related parties.

In the pre-trial investigation, prosecutors are trying to identify anyone at PrivatBank who might have committed a crime. They say in court filings that from May to September, 2014, unnamed PrivatBank officials moved money out of the bank to companies such as Trade Point Agro which they believe look ?fictitious?.

PrivatBank, now controlled by the state, said the court order was granted on the basis of detailed evidence to the court that they extracted almost $2 billion from PrivatBank through dishonest transactions.

Reuters also reviewed state property registries and company documents, visited the addresses listed for some of the firms that received loans from PrivatBank and inspected some of the physical collateral later used to underpin the loans.

Reuters found some of the firms that were granted loans or received payment for goods they did not deliver bear some of the hallmarks of shell companies. Correspondents visited the addresses where nine of the companies in London and Ukraine are listed but found none at these locations. 

The central bank says this suggests the value of physical assets used as collateral for loans was artificially inflated by PrivatBank officials to give the impression the $1.7 billion of loans were insured against default.

The collateral included a Soviet-era petroleum storage depot in Artsyz, 600 km (373 miles) south of the Ukrainian capital Kiev, which was valued at more than $12 million by PrivatBank but considered worthless by the central bank, according to the central bank?s assessment seen by Reuters.

A Reuters reporter who visited the depot found sheep grazing there and was told by Artsyz Mayor Volodymyr Mikhov: "It has not operated for at least 10 to 15 years.".    [ :D :D Empty field with sheep = collateral for $12mil. "loan."]



Reuters also sent requests for comment to the registered addresses of all 42 companies by courier but all the letters were returned.

Twenty-six of the 42 firms registered in Ukraine share the same registered address with one or more companies involved in court cases, company documents show.

« Last Edit: 12:21 30-Jan-2018 by Reggie »

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Offline kyivkpic

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There is a lesson to be learned here.
Твоя голова всегда в ответе за то, куда сядет твой зад.

Offline frank1010

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by whom and which one would that be?

Online Fraucha

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by whom and which one would that be?

Crime only pays when you don't get caught?
Peace is the failure of the military to convince the government that it can and should kick its enemies ass.

Offline Reggie

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by whom and which one would that be?

Crime only pays when you don't get caught?

Many lessons:
1. Invest in sheep.
2. Once the money's gone, it aint commin' back.
3. It's a cultural thing; not a fancy scheme.  Pretty much the same low level scheme they run on each other every day here.
4. The stolen bread, feeds the judges and cops in Ukraine.
5. To trace the stolen funds, just look for gawdy luxury brands like 'Gucci' and idiots with $300k sports cars that can't drive.
6. Did I mention sheep investments?
7. At some point it will all collapse in a big way, opening the door to even more wicked things here.
8. If I ever hear another Ukrainian say they don't open a bank account for Americans because of money laundering; I just may have to slap them.  Or spank, depending on how cute they are  ;) :D and the level of intoxication involved.
9. Time to stop giving these idiots free money, and make them earn it.
« Last Edit: 18:21 30-Jan-2018 by Reggie »
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Offline kyivkpic

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by whom and which one would that be?

Crime only pays when you don't get caught?

Many lessons:
1. Invest in sheep.
2. Once the money's gone, it aint commin' back.
3. It's a cultural thing; not a fancy scheme.  Pretty much the same low level scheme they run on each other every day here.
4. The stolen bread, feeds the judges and cops in Ukraine.
5. To trace the stolen funds, just look for gawdy luxury brands like 'Gucci' and idiots with $300k sports cars that can't drive.
6. Did I mention sheep investments?
7. At some point it will all collapse in a big way, opening the door to even more wicked things here.
8. If I ever hear another Ukrainian say they don't open a bank account for Americans because of money laundering; I just may have to slap them.  Or spank, depending on how cute they are  ;) :D and the level of intoxication involved.
9. Time to stop giving these idiots free money, and make them earn it.

And there is the catch-22... Ukraine most certainly does not deserve help but to let things collapse would be disastrous because it provide plenty of opportunity for the kremlin to move in.

Ukraine simply cannot be allowed to manage its own finances. I think it would be good to just seize most of the accounts of the gucci crowd and dramatically reorganize the Ukrainian banks, maybe after a banking holiday.


« Last Edit: 07:18 31-Jan-2018 by kyivkpic »
Твоя голова всегда в ответе за то, куда сядет твой зад.

Offline frank1010

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So you stil have hope for Ukraine? I think it is a hopless case.... Maidan and many lost lifes for nothing.

Corruption goes on at the highest levels. International lenders will block funds. Russia will keep the country in limbo. Ultimately visa free travel will be revoked. No chance to becoming a member of EU and or NATO (which is what Russia prevents). And then?

Offline Reggie

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So you stil have hope for Ukraine? I think it is a hopless case.... Maidan and many lost lifes for nothing.

Corruption goes on at the highest levels. International lenders will block funds. Russia will keep the country in limbo. Ultimately visa free travel will be revoked. No chance to becoming a member of EU and or NATO (which is what Russia prevents). And then?

Corruption goes on at every level.  Unfortunately, this is a part of the Slavic culture.  That's the main problem, always has been.

No chance of EU or NATO membership.

The Kremlin is already here; not at the highest levels of government like before, but it's here, more like a small mafia group on the fringes of power.

The new Ukrainian government just took over opportunities for economic exploitation that the Kremlin-based midget's money men had.

My predictions for the future: 

- Decrease in foreign investment (by private parties).
- Continuing Inflation.
- Deflation of housing prices (population decline = less demand).  Increased demand for housing in large cities that are job centers.
- Out-of-wedlock births to continue; the need for more orphanages.  Addiction and alcoholism, up.
- Near-zero chance of recovering Crimea.
- Costs associated with war in East to continue, whether because of war or rebuilding.  Billions for the latter.
- Overpopulation of major cities in central, western, and southern Ukraine, from displaced people in East.
- Continued government looting of resources, anti-competitive government policies, and corruption.
- Increased reliance on foreign aid just to survive.

Russia will make bolder moves on Ukraine when the country is in tatters; it will make more in-roads when Ukraine is in greater economic despair and present itself as a white knight. 

Many of the same ordinary Ukrainians that supported Maidan will kiss the Kremlin-based midget's hand: "Slavic Brotherhood" slogans will be the theme.  the Kremlin-based midget will make deals with some of the looters; continue to let them loot, for their support.  Russia is eyeing the coastal areas all the way up to Odessa.

But most of the current ruling class of looters (the UA gov. and their friends) will be long gone; most of the wealth they looted will be offshore.  The third wave of looters will come into power.  Violent crime will increase.






🇺🇸   Life would be tragic if it weren't funny.  🇺🇸