False asset declaration in the millions: risks and how to avoid them

In May 2026, law‑enforcement authorities served a notice of suspicion on the former director of a municipal enterprise of the Kharkiv City Council in a case concerning false asset declaration. According to the investigation, in his 2023 annual declaration the official failed to disclose assets worth over 4.2 million UAH.

These assets included not only real estate — a garden house and land plots — but also high‑value cars, in particular a Porsche Cayenne and a Mercedes‑Benz CL63 AMG. Investigators established that the declarant in fact used these assets, although they were formally registered to third parties, including relatives.

This approach — registering property in the names of close persons — is often mistakenly perceived as a way to avoid declaring it. In reality, the law expressly requires disclosure not only of ownership, but also of assets which a person uses or effectively controls.

Essence of the violation

Liability in such cases arises not for owning the property as such, but for submitting knowingly false information in the asset declaration.

In this case, investigators believe that:

• the information in the declaration differs from the true data by more than 4.29 million UAH;
• part of the assets was deliberately concealed;
• the declarant actually used property registered to other persons.

These actions are classified under Article 366‑2 of the Criminal Code of Ukraine and may entail serious legal consequences — from fines to criminal liability.

Typical mistakes made by declarants

In practice, such cases usually stem from systemic mistakes:

• ignoring the duty to declare property that is in use rather than ownership;
• formally registering assets in the names of relatives or trusted persons;
• incorrect valuation of assets;
• lack of prior legal review before filing the declaration.

Situations where the declarant effectively controls the property, even without formal title, are particularly risky.

Why legal review matters

Such proceedings are attracting increasing attention from law‑enforcement bodies. Even seemingly minor inaccuracies may trigger criminal prosecution.

A professional legal audit of declarations helps to:

• identify risks before documents are submitted;
• correctly classify assets and usage rights;
• minimise the likelihood of claims from the NACP and law‑enforcement agencies;
• build a sound legal position in the event of checks or investigations.

Takeaways for officials

This case once again confirms that asset declaration is not a mere formality but an area of heightened legal responsibility. Any attempt to “circumvent the system” through nominal owners or partial disclosure of information may have serious consequences.

At the same time, it is important to remember that under Article 62 of the Constitution of Ukraine, a person is presumed innocent until their guilt is proven by a guilty verdict of a court.

If you have questions or issues related to declaring assets, assessing risks or preparing a legal strategy in false‑declaration cases, you should seek professional legal advice.
Author: Ihor Yasko, Managing Partner at WINNER Law Firm, PhD in Law.