Fraud with financial resources (Article 222 of the Criminal Code of Ukraine)

Current Ukrainian legislation provides for criminal liability for illegal actions related to fraud with financial resources. These actions are subject to sanctions under Article 222 of the Criminal Code of Ukraine. Fraud with financial resources is understood as the provision of knowingly false data by an individual or legal entity to state/local government bodies, banking institutions, etc. In the vast majority of cases, the purpose of such actions is to illegally obtain loans, subventions, subsidies, tax benefits. The main qualifying features of fraud with financial resources (Article 222 of the Criminal Code of Ukraine) are the repetition of the committed actions, the infliction of material damage in particularly large amounts. If you are suspected/accused of committing actions under Article 222 of the Criminal Code of Ukraine, contact the lawyers of our law firm “Prіkhodko and Partners” for help.

Essentials of a crime under the article on fraud with financial resources

The object of illegal activity under the article on fraud with financial resources is the procedure for lending, financing and taxation, the legitimate interests and rights of creditors. The objective side of the crime is based on the active behavior of the suspect/accused.

Important: liability under Article 222 of the Criminal Code is excluded in cases of passive deception and concealment of information that must be reported on the basis of a contract or law.

In the article on fraud with financial resources, a special place is given to grants, subventions, subsidies, loans. Let's consider each of these concepts in more detail.

• Grant - funds that come from the budget on a free basis. In our country, subsidies are used in two cases: for budget regulation and assistance to enterprises (for example, to cover losses from the consequences of hostilities).
• A subsidy is a type of monetary assistance, the purpose of which is to finance a certain project, event, program, etc. If it is proven that the funds were not used for their intended purpose, they must be returned to the state. A subsidy can be assigned in kind or in cash and is intended to provide support to legal entities or individuals, local authorities, etc.
• A loan is the provision of a loan in kind or in cash by one of the subjects to another subject (legal relations are established between the creditor and the borrower). Important: the qualification of unlawful actions under Article 222 of the Civil Code does not affect the form in which the loan was provided by the bank - in cash or non-cash.
• An alternative to subsidies and subsidies are tax benefits. The establishment of such benefits is the task of the Verkhovna Rada of Ukraine and subordinate local councils (city, village, etc.).

Liability for fraud with financial resources

The article on fraud with financial resources provides for criminal liability:

• Part One

Providing knowingly false information to state authorities, banking institutions in order to obtain subsidies, loans, tax benefits, etc.
If the actions of a person do not contain signs of a criminal offense, he faces liability in the form of fines - up to 4,000 NMDI (tax-free minimum incomes of citizens) and restrictions on engaging in certain activities for a period of up to three years.

• Part Two

If the suspect's actions were committed repeatedly or resulted in significant material damage, he may face a fine of up to 10,000 NMDI, deprivation of the right to engage in professional activity - up to 3 years.

Lawyer's assistance under Article 222 of the Criminal Code of Ukraine

One of the areas of activity of the lawyers of our law company "Prіkhodko and Partners" is economic crimes and offenses. This category of crimes includes fraud with financial resources. Our lawyers provide comprehensive legal support. We work exclusively for the result! Each of our clients can count on an individual approach and 100% confidentiality. Each of our specialists is a true professional in their field.

During the consultation, our lawyers discuss all the details of the case and analyze it for risks and difficulties. Your task is to provide all available information and documents that are relevant to your case. Our lawyers will do everything else for you. We provide professional legal support at all stages of criminal proceedings: from participation in the search/interrogation, collection of evidence, to appealing the court decision. Our lawyers will do everything possible to restore justice!

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