Representatives of the economy protection department of the National Police of Ukraine have established a group of persons signing financial deals on the country's stock market. The police raided 34 premises, and the securities of companies under control of these persons have been arrested.

"At present, the securities of a group of issuers have been arrested. The total sum of capitalization of the 'securities' is almost UAH 40 billion," the department said late on Wednesday.

The department said that the National Police officers and investigators of the department for investigation of major case in the economy sphere of the Prosecutor General's Office of Ukraine unveiled a scam with the issue of junk securities on the market. The group members and managers of stock exchanges artificially increased the cost of these securities and then sold them to enterprises of the real economic sector. Buyers of junk securities (investment funds and insurance companies) used them in their scams.

"Every month the group sold junk securities for over UAH 1 billion. Tentatively, participants of financial deals received millions of profits every month. A total of 51 stamps and papers confirming the crime were seized during the raids," the police said.

The criminal case was opened under Article 205 (sham business), Article 209 (legalization (laundering) of criminally obtained money and other property) and Article 222-1 (financial fraud) of the Criminal Code of Ukraine.