Head of «Beef Export Group» Сompany Sentenced for Embezzling Government Subsidies Worth 3 Billion Tenge

In the city of Kostanay, a verdict has been delivered in a case involving the embezzlement of state subsidies and a money laundering of criminal proceeds.
The investigation was conducted by the Financial Monitoring Agency’s Department of Economic Investigations for the Kostanay Region.

As previously reported, an organized criminal group led by the head of LLP «Beef Export Group», mr. Parkhomenko, operated with the involvement of officials from the Department of Agriculture, as well as in collusion with agricultural producers and veterinary specialists from various districts, establishing a scheme to illegally obtain subsidies.

The perpetrators arranged fictitious purchases of cattle and falsified documents on their processing, which allowed them to systematically receive subsidies under the state program for the development of the agro-industrial complex.

The funds received were transferred for allegedly supplied livestock, information about which was entered into information systems, after which the money was withdrawn in cash and returned to accounts of affiliated organizations under the guise of payment for non-existent products.

To legitimize the scheme, falsified accounting documents were prepared, on the basis of which repeated applications for subsidies were submitted.

As a result, the state suffered damages exceeding 3 billion tenge.

During the investigation, the suspects voluntarily compensated more than 107 million tenge.

It should be noted that such crimes undermine trust in the system of state support for the agricultural sector and limit opportunities for bona fide entrepreneurs to develop agriculture.

By the court’s verdict, the organizer, mr. A.G. Parkhomenko, was sentenced to 14 years of imprisonment.
Fourteen members of the group were also sentenced to prison terms ranging from 6 to 10 years.

In addition, property worth 3 billion tenge (6,292,475 USD) was confiscated, including cash in the amount of 1.3 million USD and 700 million tenge (1,468,244 USD).

The verdict has not yet entered into legal force.

Press Service of the Financial Monitoring Agency