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  • Kyiv real estate scam

    Kyiv (Kiev, Ukraina) real estate scam -- BEWARE!


    Kyiv: Real estate scam organizer flees country

    Police have arrested the accountant of a firm accused of conducting a
    real estate scam in the capital city, but the company's owner has fled
    the country.

    The "Elita Tsentr" limited liability company stands accused of
    scamming thousands of Kyiv residents as well as a construction
    company. Criminal charges have been laid. At issue is a multi-story
    building in Kyiv's city center with residential and office space. The
    investigation found that the Elita Tsentr sold the same apartments to
    more than one buyer. The construction company working on the building
    also incurred losses as it purchased materials on credit. Authorities
    would not name the man who fled the country with some 80 million
    dollars. Kyiv city police chief Vitaly Yarema would only say that the
    man had both Ukrainian and Russian passports, and that he likely fled
    to Russia.



    March 3, 2006

    http://www.flippingfrenzy.com/admin/...n-the-ukraine/

    Taking it to The Streets: Massive Real Estate Fraud Reported in The Ukraine
    According to the Associated Press, 8,000 Ukrainians demonstrated
    yesterday in that country's capital demanding an investigation into a
    massive real estate fraud scheme:

    Thousands of Ukrainians bought new apartments in Kyiv that were
    secretly being sold to multiple buyers and never completed. Police
    have estimated that some 1,500 people might have fallen victim to the
    scam, losing an equivalent of US$79 million (-67 million). The owners
    of the company accused of fraud, Elita-Tsentr, have fled the country
    and have been put on the international wanted list, Ukrainian media
    reported.

    Protesters gathered outside the Kyiv city council. In February,
    President Viktor Yushchenko ordered his government to help sort out
    the scandal. The scam occurred as real estate prices in the Ukrainian
    capital shot up, leaving many buyers desperate for a deal. Buyers were
    offered lower prices if they purchased yet-unbuilt apartments.

    Problems emerged earlier this year when buyers discovered that their
    apartments had been sold to others and that construction was behind
    schedule.

    While police estimate that 1,500 people fell victim to the scam,
    nearly five-times that many (a whopping 8,000 citizens) participated
    in yesterday's demonstration. Imagine if four to five of your closest
    friends and neighbors chose to stand by your side to protest crimes
    committed against you and your family here in the U.S. Talk about
    community support. If we had that sort of a citizenry here, we'd be
    able to wipe out real estate and mortgage fraud literally overnight.
    Neighbors would be looking out for one another in ways we've never
    seen before, while the fraudsters, scammers, and bad guys would be
    identified, prosecuted and publicly humiliated.

    Anyone want to rally?



    http://ukrweekly.com/Archive/2006/090601.shtml

    Massive real estate scam uncovered in Ukraine's capital

    by Zenon Zawada
    Kyiv Press Bureau

    KYIV - A massive real estate scam that snared thousands of Kyiv
    apartment investors has unraveled in recent weeks, causing public
    outrage and revealing the instability of Ukraine's precarious
    investment climate.

    With the hope of obtaining a brand new apartment, average Ukrainians
    invested most, if not all, of their savings with Elite-Center, a real
    estate development company that claimed to have been working on seven
    simultaneous construction projects in Kyiv.

    Instead, Elite-Center's business partners conducted construction at
    one site while collecting money for others, in some cases selling the
    same apartment as many as five times over to five different buyers.

    Once the victims became aware of the scandal, the swindlers fled
    Ukraine some time in late January, taking with them a stunning $78
    million they had collected.

    One of the partners, Oleksander Volkonskyi, was a Russian citizen with
    an Israeli passport, according to Ukrayina Moloda, a leading daily
    newspaper in Ukraine that broke the story.

    The current whereabouts of Mr. Volkonskyi and his partner, Kyiv
    resident Oleh Shestak, are unknown. Minister of Internal Affairs Yurii
    Lutsenko confirmed that the funds had been embezzled months earlier
    and the suspects were abroad.

  • #2
    Re: Kyiv real estate scam

    I saw that too and did not invest thankfully.

    Comment


    • #3
      Re: Kyiv real estate scam

      Volkonsky has been seen in Israel.
      Current Kiev mayor's son Stepan is believed to help Volkonsky to transfer the money abroad.
      A fraud like this one NEVER happens unless is covered by high state offisials.

      Comment


      • #4
        Re: Kyiv real estate scam

        Recent news. The second Decree of President has been made in February, 2008, to assist victims of Elita-Center Fraud, after their hunger strike before his windows. The Government Commission has been made to solve the issue and provide the vicitims with apartments. The terms were set to execute all the measures and sign the agreements with all the victims till May, 15 2008 - but this decree haven;t been executed again! Moreover, the members of Government Comission at the meeting on May,20 declared that the Decree contains mistakes.... is it a provocation or what?
        What kind of President is it and what kind of Secretariat that counts hundreds of legal advisers is it?
        Ukraine is at the bottom of world pit and it will take this country years and years to climb out of it...
        The victims has set tents at the President's building again and plan to resume hunger strike again...
        Slogans are like :"Stop Genocide of Inverstors in Ukraine" and the like

        On the other side of their barricades there were other tents of the victims of another large-scale real estate fraud that took place just recently. The number of victims are nearly two thousand people...

        Comment


        • #5
          Re: Kyiv real estate scam

          I thought things were supposed to be getting better there?

          Comment

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