Criminal Gang Leaders Sentenced for Exploiting War in Ukraine

A Ukrainian couple and associates have been jailed for exploiting war to launder £6.7 million through a vehicle sales scheme that funneled criminal cash into cryptocurrency.

Top Takeaways

Valeriy Popovych, his wife Oksana, and Vitaliy Lutsak were convicted of laundering over £6.7 million by exploiting the Ukraine war through vehicle sales.
The gang purchased vans and lorries in the UK with criminal cash, then sold them in Ukraine, converting profits to cryptocurrency.
Police found £190,000 in cash at Popovych’s home and vehicle; his crypto wallets processed over $14 million.
The operation funded the Popovyches’ lavish lifestyle, including the purchase of a second London home.
Multiple agencies collaborated in the investigation, including the Metropolitan Police, NCA, HM Revenue and Customs, and the Financial Conduct Authority.

Exploiting War for Criminal Profit

A Ukrainian couple and their associates have been sentenced after running a sophisticated money laundering operation that exploited the Russia-Ukraine conflict to launder millions in criminal cash. Valeriy Popovych and Vitaliy Lutsak each received six years and six months in prison, while Oksana Popovych, Valeriy’s wife, was also found guilty, awaits sentencing. The group laundered approximately £6.7 million in just over a year by purchasing vehicles in Britain and selling them to war-torn Ukraine, where demand for such vehicles was high and cryptocurrency regulation was minimal.

The gang operated under the guise of a legitimate export business, using criminal cash to buy vans and lorries in the UK before selling them in Ukraine. When police apprehended Popovych, they discovered more than £60,000 in cash in his car and a further £130,000 at his home. Investigators determined that over $14 million in cryptocurrency passed through Popovych’s digital wallets as part of the elaborate scheme designed to obscure the criminal origins of their funds.

Sophisticated Criminal Network

The investigation revealed distinct roles within the criminal enterprise. Popovych presented himself as a legitimate businessman dealing in second-hand lorries, using his standing in the market as cover for his illegal activities. His wife, Oksana, handled the finances and record-keeping. Lutsak coordinated money movements and facilitated cash collection throughout the UK. The organization also included Russian national Semen Kuksov, who received a sentence of five years and seven months for his part in the operation.

Justice John Dodd KC, who presided over the case, emphasized the calculated nature of the crimes during sentencing: “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 enabled the Popovyches to maintain a lavish lifestyle, including the purchase of a second house in southwest London, demonstrating how effectively they were able to integrate their criminal proceeds into legitimate assets.

Complex Investigation Leads to Conviction

The Metropolitan Police’s Economic Crime Unit led a thorough investigation that involved analyzing chat logs, financial transactions, CCTV footage, cryptocurrency wallets, and call records. This comprehensive approach brought together multiple agencies, including the National Crime Agency, HM Revenue and Customs, and the Financial Conduct Authority. Detective Constable Harry Davies spearheaded the investigation, highlighting the international scope of the operation and the determination of law enforcement to pursue complex financial crimes.

The defendants were found guilty in March 2024 after a jury trial. They faced charges of transferring criminal property and operating an unregistered money service business. Authorities are now pursuing confiscation proceedings to recover the criminal benefits obtained by the defendants. This case stands as a stark example of how international conflicts can create opportunities for criminal exploitation and demonstrates the commitment of law enforcement to pursue those who attempt to profit from such situations.