The Security Service of Ukraine (SBU), jointly with the State Financial Service of Ukraine, has stopped an illegal operation of officials of the social insurance fund for temporary loss of capacity to labor, who embezzled state budget funds of over UAH 30 million.

The press service of SBU reported on Thursday that after a tender to select recreation services in 2014 the social insurance fund paid UAH 44.8 million, however some of the funds under fake agreements were sent to bogus firms, and cash was subsequently withdrawn and divided between the participants of the criminal scheme.

At present, criminal proceedings against tax avoidance on an especially large scale, fake business practice, money-laundering and embezzlement have been opened. Directors and founders of the companies which received the money from the social insurance fund have been received notifications that they are suspected of committing crimes. A guilty verdict has been handed down against the founder of one of the companies.

After verdicts are passed the embezzled funds will be returned to the national budget, the SBU said.