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Real Estate Horrors
A Giant «Apartments» Swindle in Kiev: Investors Robbed for $100 mln. According to Ukrainian News agency, on February 9, 2006, the Investors' Board of and Investment-Construction Group «Elite Center» released information about a $100 million theft committed by the company leaders. The money'd been invested into construction of residential real estate in the capital of Ukraine.
"More than $60 million was invested only into the house on Shmidta St.,34-42, plus other 8 construction areas about the city, which is more than $100 million on the total» - stated the Group's lawyer.
According to his words, the Board is undertaking thorough checks of the company inversors' agreements to identify the exact sum of the loss, for the same apartment in the Shmidta Street was sold a number of times!
«There are 400 apartments in our house, each of them was sold more than once. The checks have already shown that every apartment was sent at least two times»
Of the 9 areas intended for construction, active works took place only in the Shmidta St., 34-42; even in this building site in the 1,5 years term, less than one third of the building was accomplished, which caused dissatisfaction of the investors.
As the result, a register of investors' agreements was made up, and explanation was demanded from the «Elite Center» leaders.
In response to investors' demands to provide explanations about the delayed construction works, a few of the company leading managers, escaped from Kiev and police is trying to find them these days.
 The company lawyer also informed investigation that the Elite-Center company has not been officially registered as a juridical person- «The well-marketed brand of Elite Center did its work well, and all the contracts, agreements and papers were made through other companies».
According to the Investors' Board, the average payment made by each investor for the property to be purchased in Shmidta street, equaled US$65,000 to US$70,000.
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