Ukrainian Citizen Belan Stole Millions Of Dollars From Hong Kong Businessman - Indictment

Ukrainian Citizen Belan Stole Millions of Dollars From Hong Kong Businessman - Indictment

A Hong Kong businessman lost millions of dollars in assets, his apartment, as well as Bentley and McLaren cars as a result of actions of Ukrainian fraudsters led by Valentyn Belan, US prosecutors said in an indictment

WASHINGTON (Pakistan Point News / Sputnik - 09th January, 2019) A Hong Kong businessman lost millions of Dollars in assets, his apartment, as well as Bentley and McLaren cars as a result of actions of Ukrainian fraudsters led by Valentyn Belan, US prosecutors said in an indictment.

Belan, Olena Chumchenko and Nika Khrystych were charged with conspiracy to commit wire fraud, according to the complaint from Southern District of New York court. According to the prosecutors, the defendants organized a long-running scheme that robbed an unnamed Hong Kong businessman, forcing him to sell his assets. Belan's co-conspirators posed as senior official of Ukrainian ministry, the heir of Russian oil business and other personalities to persuade the victim to invest in real estate, mining and oil productions in Ukraine. The victim was deceived through use of falsified documents, misrepresentations, and fake US Currency, according to the indictment.

Belan was arrested in the United States in December 2018. The whereabouts of other suspects in the case is unclear. The prosecution justified US court jurisdiction by claiming that part of the scheme took place on the territory of New York's Southern District.

Belan met the victim in 2008 in Ukraine, where the Hong Kong businessman was looking for investment opportunities. In 2009, the defendant offered the victim to purchase a football field and Ukrainian properties. The businessman agreed to spend $9 million.

Belan was in charge of all purchase transactions and wired around $50,000 a month back to the victim. In the end of 2013, the wire transfers stopped, while Belan asked for additional funds to allegedly cover real estate tax.

In 2010, Belan offered the victim another profitable business idea: investment in natural resources exportable to China. During one of the visits to Ukraine, Belan arranged the victim to be escorted in a motorcade to a location of what the latter believed to be a private residence of a "Ukrainian minister."

Through Belan, the "minister" offered the victim to purchase a 85 percent stake in a Ukrainian mine, while the remaining 15 percent were meant to belong to the daughter of the fake minister.

Further meetings took place in Dubai and Nice.

The businessman was surprised that he was unable to find the "minister" on the list of Ukraine's Cabinet of Minsters, as well as that the daughter of the "minister" did not speak English, even though Belan claimed that she was Yale graduate. Belan assured the victim that the person was a "shadow minister" and was not officially a part of the government. The defendant also brought the second potential buyer of the mine, thereby convincing the businessman to invest in the project. From 2011 to 2013, the victim wired $3.5 million for the purchase and the maintenance of the non-existent mine.

In 2016, Belan introduced victim to Nika Khrystych, whom Belan presented as an important assistant to the "minister" and the manager of the mine. Khrystych was really the co-conspirator and Belan's girlfriend, according to the indictment.

Shortly after, the businessman was informed about the minister's illness and was introduced to a woman who was presented as the minister's deputy.

In fall 2017, the "minister" passed away and the mines halted operations. It was said that the resumption of work would require additional money. In order to protect his investments, the Hong Kong businessman was forced to sell his own apartment in Hong Kong for $2.3 million. Belan lent him $600,000 for early mortgage repayment. The "buyer" turned out to be the sister of the suspect Chumachenko. The businessman's millions and his real estate were now in the hands of the fraudsters.

In the fall of 2018, shortly before the arrest, Belan and the "minister's deputy" met with the victim in New York and demanded $2.5 million to buy out the remaining interests in the mine. The businessman tried to reach the mine's "manager" Khrystych to discuss the details. Belan told the victim, however, that Khrystych had been "poisoned with radiation" at the mine and placed in quarantine at a military base at least until 2019. Businessman believed it, too.

In 2014-2015, Belan convinced the businessman to purchase the second mine, for which the victim agreed to sell the building he owned in Hong Kong for $13 million. The "buyers" were a man and a woman, whom Belan presented as rich Russian businessman and his heiress. "Buyers" were supposed to wire the money directly to Belan. As a proof of receipt, the defendant sent the victim falsified bank documents and his own photograph with packs of dollars.

Later, "Russian oil heiress" offered the businessman to invest in oil business. To gather the money, the victim sold $9.5 millions of his office real estate. Most of the funds, along with the borrowed $2.5 million went to the "oil heiress", who suddenly had some "financial troubles." In reality, the money was wired to US bank accounts that belonged to Olena Chumachenko, Belan's girlfriend and co-conspirator, who then wired them to Belan, according to the indictment.

Businessman even sold his two cars, Bentley and McLaren, to help the "heiress." Chumachenko went to the United Kingdom to fetch them.

SCHEME EXPOSED DUE TO FAMILY ISSUES

The fraudulent scheme was exposed in fall 2018, according to the court documents. It turned out that Belan and Chumachenko had two kids, whom Belan took to the United States without their mother's approval.

Chumachenko filed a lawsuit against Belan, demanding the custody of the kids. In an attempt to create troubles for her ex-partner, Chumachenko eventually told the victim about the fraudulent scheme. Specifically, the victim learned that the money he wired to purchase the mines had gone to Chumachenko's bank accounts and that his apartment had been sold to Chumachenko's sister.

Olena Chumachenko was afraid of the criminal prosecution and even returned the estate to the victim. However, she was still charged with receiving millions of dollars from the victim, which she then transferred to Belan. In 2017 alone, transactions with Chumachenko's involvement amounted to $5.4 million, according to the indictment.

If found guilty, all defendants will face many years in prison.