Fleeing to the UAE: Ex-Regional Council Member Allegedly Defrauded Bank of 185 Million Hryvnias

Allegations Against Andriy Gordiychuk

According to Главком: Andriy Gordiychuk, a former deputy of the Khmelnytskyi Regional Council, is suspected of orchestrating a large-scale fraud scheme involving state bank loans totaling 185 million UAH, as well as embezzling agricultural products worth 11 million UAH. He is currently residing in the United Arab Emirates, and authorities are working to initiate an international manhunt. This case highlights ongoing concerns about financial misconduct in Ukraine's banking and agricultural sectors.

How the Fraud Worked

Between 2016 and 2019, Gordiychuk secured three loans from the state-owned JSC AB Ukrgasbank. The first, nearly 80 million UAH, was used to purchase 90 tractors. After acquiring the equipment, he then used it as collateral to obtain a second loan of 70 million UAH, ostensibly for working capital. Additionally, he arranged a third loan of 35 million UAH through shell companies under his control that conducted no real business. The combined value of these loans is approximately 185 million UAH, yet investigators have located only 46 of the 90 tractors. The state bank has suffered losses of 140 million UAH.

Prosecutor General Ruslan Kravchenko explained that the scheme involved selling the collateralized tractors to third parties.

“He sold the pledged tractors to third parties. Investigators managed to find 46 out of 90 machines. They were sold, partially repaying the debt to the bank. In the end, the state bank's losses amounted to 140 million UAH,” said Ruslan Kravchenko.

Furthermore, the investigation uncovered a separate scheme involving the theft of agricultural products in the Kryvyi Rih region. Gordiychuk and his accomplices ordered over 800 tons of rapeseed from farmers through a fictitious company. To create an appearance of legitimacy, they made partial payments for the deliveries. However, once they received the entire shipment, they exported it and stopped all payments. The farmers' losses total 11 million UAH.

The criminal charges against Gordiychuk include:

• Part 4 of Article 190 of the Criminal Code of Ukraine (fraud);
• Part 3 of Article 27 (complicity);
• Part 5 of Article 191 (embezzlement).

The investigation is ongoing, and law enforcement agencies are taking steps to locate the suspect.

The Gordiychuk case underscores serious issues with fraud in Ukraine's finance and agribusiness sectors. The uncovered schemes may point to systemic abuses that require a comprehensive approach to address. Such incidents risk undermining trust in state financial institutions and could negatively impact the agricultural sector, a critical component of the country's economy.

The recent allegations against Andriy Gordiychuk underscore a broader issue of financial fraud in Ukraine, reminiscent of other high-stakes cases. For instance, a recent investigation revealed a significant money laundering operation linked to defense contracts, amounting to $14 million. Such cases highlight the systemic vulnerabilities within various sectors, further complicating the efforts of authorities to combat financial crime. To explore this related case and its implications, read more about the money laundering scheme tied to defense contracts.