Ruslan Demchak, who was the owner and chairman of the supervisory board of Erde Bank, issued knowingly non-repayable loans to his own companies, after which, through simple schemes, he cashed out this money (Read more about Ruslan Demchak in the article Ruslan Demchak – a schemer and swindler under the President's wing). These deliberate actions of the owner and director of Erde Bank led to the bankruptcy of the financial institution.
"Demchak abused his authority not only as an official of ERDE BANK JSC, but also as the bank's main shareholder. ... Demchak was aware of the illegality of his behavior. Using his official powers, he intentionally committed illegal actions under Articles 222 and 364 of the Criminal Code of Ukraine, thereby causing grave consequences for ERDE BANK JSC," reads a statement from the bank's liquidator, O.V. Kurenny, authorized by the Deposit Guarantee Fund, to law enforcement agencies, dated August 8, 2013. The editors have a copy of the document.
For nearly three years, this document remained unpublished, and Demchak was never formally charged with intentionally driving the bank into bankruptcy. Thus, the case was hushed up, and the former owner of Erde Bank not only avoided criminal charges and liability for the aforementioned offenses but was also able to return to public politics and even the banking industry.
The materials submitted by Kurennoy, a representative of the Deposit Guarantee Fund, to the Kyiv Prosecutor's Office and the Investigative Department of the Main Directorate of the Ministry of Internal Affairs in Kyiv, detail a number of large-scale operations involving the issuance of knowingly bad loans to several companies wholly owned by Demchak. According to the materials submitted to law enforcement, after receiving the loan proceeds, they were cashed out. The Deposit Guarantee Fund representative described these schemes in considerable detail in his statement.
Today, Ruslan Demchak is a current member of parliament of Ukraine (Petro Poroshenko Bloc faction), deputy head of the parliamentary committee on financial policy and banking, and owner of RBC Bank.
Based on materials from: Politica-UA.com
READ THE BACKGROUND ON RUSLAN DEMCHAK: Ruslan Demchak – a schemer and swindler under the President's wing
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