The investigation to date has identified a series of activities, which, taken together, indicate that PrivatBank was subjected to a large scale and coordinated fraud over at least a ten year period, which resulted in the Bank suering a loss of at least USD 5.5 billion.
HOW FRAUD WAS CONDUCTED
1. Developing and providing new products and services to create the visibility of a real bank to attract funds from private and commercial depositors. The Bank employees stated the Bank was like a “vacuum cleaner”.
2. Providing loans to the companies related to the former shareholders and supporting of the Loan Recycling scheme – repayment of old loans provided to parties related to the former shareholders and their aliates through the issuing of new loans to other parties related to the former shareholders and their aliates, which in turn were repaid by further loans.
3. Disguising of flow of funds through dozens of internal transactions which demonstrated the characteristics of a large scale coordinated money laundering scheme, including the rapid and arbitrary split then re-joining of funds between multiple related accounts, multiple movements between accounts at the Bank.
4. Withdrawing these funds for the benefit of the former shareholders and their aliates.
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