Forbes Embroiled In Billion-Dollar Ukrainian Corruption Scandal

http://www.buzzfeed.com/maxseddon/forbes-embroiled-in-billion-dollar-ukrainian-corruption-scan

Police say Sergey Kurchenko, a fugitive oligarch linked to ousted Ukrainian President Viktor Yanukovych and the owner of Ukrainian Forbes, stole over $1 billion. Forbes scion Miguel Forbes approved the deal and served as an adviser to Kurchenko.




KIEV — Forbes magazine’s Ukrainian edition is embroiled in fresh controversy after Ukrainian police and the European Union moved against its fugitive owner on suspicion of stealing more than $1 billion from state coffers. The scandal around 28-year-old oligarch Sergey Kurchenko may stretch as far as the U.S. and Forbes family scion Miguel Forbes, who approved Kurchenko’s controversial purchase of the magazine’s Ukrainian edition last summer and signed on as an informal business adviser.

Arsen Avakov, Ukraine’s acting interior minister, announced 11 criminal investigations Thursday into the VETEK group and Kurchenko, its secretive owner, for importing and “re-exporting” oil in violation of tax and customs regulations. Two other investigations allege that VETEK defrauded state gas company Naftogaz, and charge a company owned by a former driver reportedly linked to Kurchenko with not paying for gas. The total sum that police accuse Kurchenko and his alleged affiliates of stealing totals about 10 billion hryvnias (more than $1 billion).

Kurchenko released a statement Thursday through VETEK expressing his “surprise” at the sanctions and denying the allegations against him.

“I am an honest Ukrainian businessman who has always invested in Ukraine and practically all my business is concentrated here,” Kurchenko said. He accused rival oligarchs and their political lackeys of concocting the corruption allegations against him and claimed that no criminal charges had ever been filed against him or his company, apparently unaware of Avakov’s allegations. “And I am certain that the misunderstanding that has arisen will be resettled.”

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