The Security Service of Ukraine (SBU) jointly with Prosecutor General's Office and police raided OJSC KSG Bank investigating into embezzlement of UAH 386 million.

The press service of SBU reported late on Wednesday that the bank's offices, commercial structures involved in the crime and places of residence of key owners and top managers of the bank were raided.

"Law enforcers seized draft accountant documents, stamps, documents confirming unlawful operations and data storage devices with information about operation of bubble companies involved in financial transactions with the funds of the bank," the press service said.

The law enforcers are investigating into the crime under Part 4 of Article 190 of the Criminal Code of Ukraine (fraud). Investigation is underway.

The key shareholders of the bank were Serhiy Kasianov and Ksenia Kasianova (33.46% each) and former MP Oleksandr Shepelev.

According to media reports, in 2012 a criminal case was opened against former MP Shepelev. He was accused of being involved in embezzlement of funds of Rodovid Bank (Kyiv, over UAH 220 million) and of participating in embezzlement of refinancing funds of UAH 315.3 million issued by the National Bank of Ukraine (NBU).

Shepelev was put on the international wanted list and was detained in Hungary early July 2013. Hungary subsequently extradited him to Ukraine. However he managed to escape while in hospital and fled Ukraine for the second time.

Along with his implication in bankruptcy of Rodovid Bank, Shepelev is accused of two murders (banker Serhiy Kirychenko in 2003 and Interior Ministry's colonel Roman Yerokhin in 2006) and an attempted murder of Serhiy Diadechko in 2012. On March 20, 2015 Shepelev was detained in Russia.

On August 30, 2016, the NBU decided to revoke the banking license and liquidate KSG Bank for regular violations in the fight and prevention of legalization of proceeds received from crime (money laundering), in particular for risk activities in the sphere of financial monitoring.

During the last inspection the NBU revealed the scheme of conversion of bank deposits into cash, in which legal entities, individual entrepreneurs and credit unions were involved.

Participants in the scheme carried out a series of transactions aimed at multi-million dollar remittances to the bank accounts of the bank's individual clients and the subsequent transfer of funds into cash. The customers were unable to carry out operations in such amounts, while some of them lost their passports or the passports did not coincide with the owners.

The NBU intended to provide information on financial operations to law enforcement agencies.

KSG Bank was founded in 1993.