Criminal Gang Jailed After Exploiting War in Ukraine

Person in orange jacket behind prison bars

A Ukrainian criminal gang has been jailed after laundering £6.7 million through a vehicle export scheme that exploited the war effort, leaving a trail of luxury purchases and cryptocurrency transactions that ultimately led to their downfall.

Quick Takes

Valeriy Popovych, Vitaliy Lutsak, and Oksana Popovych were convicted for a sophisticated money laundering operation exploiting Ukraine’s war-time vehicle needs.
The gang purchased vans and lorries with criminal cash in the UK before selling them to Ukraine, converting profits to cryptocurrency.
Police discovered over £190,000 in cash during raids and traced more than $14 million flowing through Popovych’s crypto wallets.
The operation enabled the criminals to purchase a second house in southwest London before authorities finally shut them down.
Valeriy Popovych and Vitaliy Lutsak received 6.5-year prison sentences, with Oksana Popovych awaiting sentencing.

Exploiting War for Criminal Profit

A gang of criminals has been jailed after exploiting the Russia-Ukraine conflict to launder millions of pounds through a vehicle export business. Valeriy Popovych and Vitaliy Lutsak were each sentenced to six years and six months in prison after being convicted of transferring criminal property and operating an unregistered money service business. Oksana Popovych, Valeriy’s wife, was also found guilty and awaits sentencing. The sophisticated operation laundered approximately £6.7 million in just over a year, using Ukraine’s wartime demand for vehicles and its lack of cryptocurrency regulation as cover.

The group purchased vans and lorries in the UK with illicit cash, then sold them to Ukraine while funneling the profits through cryptocurrency exchanges to hide their criminal origins. The Metropolitan Police’s Economic Crime Unit led the investigation, working with multiple agencies including the National Crime Agency, HM Revenue and Customs, and the Financial Conduct Authority. Their meticulous work analyzing financial transactions, CCTV footage, crypto wallets, and communication records built an ironclad case against the defendants.

Cash Seizures and Cryptocurrency Trails

The investigation hit paydirt when police discovered over £60,000 in cash in Popovych’s car and an additional £130,000 during a search of his home. These discoveries were just the tip of the iceberg. Investigators traced more than $14 million flowing through Popovych’s cryptocurrency wallets, demonstrating the scale of the operation. Lutsak played a key role in the scheme, coordinating money movements and facilitating cash collection throughout the UK. The gang’s activities were carefully structured to appear legitimate, using an export business as cover while secretly moving criminal proceeds across borders.

Russian national Semen Kuksov, another participant in the scheme, received a sentence of five years and seven months. Justice John Dodd KC, presiding over the case, emphasized the calculated nature of the crimes, telling the defendants, “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 proceeds of the laundering operation enabled the Popovyches to purchase a second house in southwest London, highlighting how the criminals enjoyed the fruits of their illegal enterprise before justice caught up with them.

International Crime and Justice Response

The investigation culminated in the arrest of Oksana Popovych and Lutsak in May 2024, with formal charges filed the following month. In March 2024, a jury delivered guilty verdicts for all three defendants. Detective Constable Harry Davies, who led the investigation, highlighted both the international reach and complexity of the crime. The Crown Prosecution Service has initiated confiscation proceedings to reclaim the money gained through the criminal activity, ensuring that the defendants cannot benefit from their crimes even after serving their sentences.

Prosecutor Negeen Momtahen rejected the notion that money laundering is a “victimless crime,” emphasizing the real harm caused by such operations. The sophisticated scheme took advantage of a war-torn country’s needs while enriching criminals in the process. The case highlights the ongoing challenges of combating financial crimes in an era of cryptocurrency and international conflicts, where criminals find new opportunities amidst tragedy and chaos. For now, justice has been served, with the main perpetrators facing significant prison time and the loss of their ill-gotten gains.