Odesa Court Imposes 60-Day Detention on Pyramid Scheme Suspects

The Malynovskyi District Court of Odesa has imposed pre-trial restraints on a man and two women detained on suspicion of organizing a pyramid scheme in the form of detention with an alternative to bail.

According to the press service of the Main Directorate of the National Police in Odesa Oblast, they will be held in custody for 60 days with the right to be released on bail: the man in the amount of UAH 6 million 56 thousand, and the women in the amount of UAH 5 million 450 thousand.

Law enforcement officers detained three people - the organizer of the fraud scheme and his two accomplices - on February 28.

In order to lure money from citizens, the accomplices created the appearance of a limited liability company called VinEco, which was later changed to Vinex Trade, allegedly engaged in various activities, the main one being investment, and earning excessive profits.

By artificially building a picture of a successful business, the criminals convinced citizens to make deposits in their company, promising high interest rates for using their funds and mandatory return of deposits at any time. In addition, depositors were guaranteed additional payments for attracting new investors.

Between 2022 and 2024, the fraudsters defrauded hundreds of citizens who invested tens of thousands of dollars in the pyramid scheme. So far, the names of seven victims are known, who have suffered losses totaling more than $200,000.

The police conducted a series of authorized searches in Odesa and Kyiv regions, during which they seized material evidence of the suspects' illegal activities, including computer equipment, documentation, phones, money, and cars.

Earlier, the police detained a resident of Odesa suspected of fraud. The man promised housing for the defenders and their families. As a result of his actions, 32 people suffered.

Law enforcement officers also detained three suspects of participating in a criminal group that deceived citizens by posing as bank employees and misappropriating funds.

Кирило Бойко