Ukrainian Criminals Sentenced in Money Laundering Case Linked to War

Three Ukrainian businessmen have been jailed after exploiting the war in their homeland to launder over £6.7 million through a sophisticated vehicle export scheme that employed cryptocurrency to hide their illicit profits.

Key Insights

Valeriy Popovych, his wife Oksana, and Vitaliy Lutsak operated a criminal enterprise that laundered millions by purchasing vehicles in the UK to sell in war-torn Ukraine.
The operation processed over £6.7 million in criminal funds in just one year, with more than $14 million flowing through Popovych’s cryptocurrency wallets.
Police discovered £190,000 in cash during raids, with £60,000 found in Popovych’s car and £130,000 at his home.
All three defendants were found guilty, with Valeriy Popovych and Vitaliy Lutsak each sentenced to six years and six months in prison.

Exploiting War for Criminal Gain

The criminal gang, led by Valeriy Popovych and Vitaliy Lutsak, established what appeared to be a legitimate export business purchasing vans and lorries in the UK for resale in Ukraine. The operation capitalized on Ukraine’s desperate need for vehicles during the ongoing conflict with Russia. Using criminal cash collected throughout the UK, the defendants purchased second-hand commercial vehicles that were exported to Ukraine, where wartime demand had created a lucrative market opportunity.

Justice John Dodd KC, who presided over the case, highlighted the calculated nature of the scheme, stating, “This clearly was sophisticated offending, carried out over a sustained period. I’m satisfied each of you played a leading role in this operation.” The profits from vehicle sales were then converted into cryptocurrency, exploiting Ukraine’s lack of cryptocurrency regulation to move money internationally while evading detection. This complex financial web allowed the criminals to amass substantial wealth in a short period.

Sophisticated Money Laundering Network

The money laundering operation involved extensive coordination across multiple countries. Lutsak’s primary role was facilitating cash collection throughout the UK, which was then used to purchase vehicles. These funds were subsequently processed through a network of cryptocurrency exchanges and digital wallets to obscure their criminal origin. Investigation revealed that more than $14 million in cryptocurrency had passed through Popovych’s digital wallets alone, demonstrating the extensive scale of the operation.

The sophisticated nature of the scheme was further revealed through extensive evidence gathered by metropolitan police investigators, including CCTV footage, transaction records, call logs, and cryptocurrency wallet analysis. The laundered money enabled the Popovyches to purchase a second home in southwest London, demonstrating how the profits were being used to acquire assets and establish a comfortable lifestyle in the UK while their homeland suffered through war.

Investigation and Prosecution

The Metropolitan Police’s Economic Crime Unit led the investigation in collaboration with the National Crime Agency, HM Revenue and Customs, and the Financial Conduct Authority. The breakthrough came when police found £60,000 in cash in Valeriy Popovych’s car and an additional £130,000 at his home. Oksana Popovych and Vitaliy Lutsak were subsequently arrested in May 2023, with formal charges filed in June of that year.

Following a trial, Valeriy Popovych and Vitaliy Lutsak were each sentenced to six years and six months in prison after being found guilty of transferring criminal property and operating an unregistered money service business. Russian national Semen Kuksov, also involved in the operation, received a sentence of five years and seven months. Oksana Popovych was similarly found guilty but awaits sentencing. The Crown Prosecution Service has initiated confiscation proceedings to seize the criminal proceeds and assets acquired through the scheme.