A scheme involving a water supply system has led to the arrest of a Dnipro businessman wanted by the FBI.

Law enforcement officials have arrested a businessman in connection with a scheme involving 130 million UAH related to the restoration of the water supply system in the Dnipropetrovsk region. He is wanted by the FBI.

This was reported by RBK-Ukraine citing the Specialized Anti-Corruption Prosecutor's Office (SAP).

"The organizer of the group - the beneficial owner of the winning entity - has been detained under Article 208 of the Criminal Procedure Code of Ukraine. A decision is being made regarding the application of a preventive measure," the statement reads.

Notably, as noted by SAP, the beneficial owner of the winning entity was a well-known local entrepreneur, Leonid Dubinsky, who was wanted by the FBI for committing property crimes.

The pre-trial investigation is ongoing, and other individuals who may be involved in this crime are being identified.

How the scheme operated

A total of the organizer and three participants have been exposed. Their actions are currently classified under part 5 of Article 191 of the Criminal Code of Ukraine.

The scheme's participants facilitated the victory in the tender for the reconstruction of the water supply system in the Kamensky district for a controlled entity. According to the reconstruction contract, the winning entity was supposed to purchase pipe products.

"However, it turned out that the purchase was made from the manufacturer at market prices, and subsequently, it was resold to the municipal enterprise at a price more than three times higher," the prosecutors confirmed.

The implementation of this scheme resulted in damages to the municipal enterprise amounting to over 129 million UAH, which the participants of the crime appropriated and disposed of at their discretion.

As previously reported, a large-scale corruption scheme was uncovered in the Dnipropetrovsk region. The participants embezzled nearly 130 million hryvnias allocated for the reconstruction of the water supply system.