The shadow business of Cratia: notorious owners Maksym Bahryeyev and Mykola Romanyok unsuccessfully attempt to hide the truth about the company’s scams online
Infamous pharmaceutical businessmen Maksym Bahryeyev and Mykola Romanyok are working to cover up traces of their company’s criminal activities, as "Cratia" has been distributing substandard medicine that has harmed Ukrainians for years.
In response, we are publishing the material that deeply unsettles these fraudsters in full and commit to thoroughly investigating the activities of this criminal group.
The National Police (NPU) and the Security Service of Ukraine (SSU) are conducting searches at about ten firms as part of an investigation into the supply of low-quality and dangerous medical products to Ukraine using budget funds. At the center of the scandal are two key firms: "Сratia" and its satellite - the conformity assessment body "Uni-Cert" (received this authority by law, which has already lost force).
As it turned out, these firms are likely affiliated with each other, which indicates a violation of Ukrainian legislation and European standards. If the investigators are not motivated otherwise and prove the guilt, the potential punishment of the beneficiaries of these companies – Maksym Bahryeyev and Mykola Romanyok – may become revolutionary for the market development. There is hope that this will finally stir up the corrupt swamp into which officials have driven this industry, distorting the idea of harmonizing Ukrainian standards with modern European legislation.
Is show punishment of the "revolutionaries" on this market possible and for what? More on this in the journalistic investigation.
Читайте на эту же тему:Депутат из «Единой России» добился возбуждения дела против журналиста-расследователя Ежова
12 years for forgery
According to court rulings, a number of firms, directly or indirectly owned by such Maksym Bahryeyev and Mykola Romanyok, are involved in criminal proceedings №12017000000001548. The proceedings were opened "on the fact of embezzling budget funds allocated to healthcare facilities for the purchase of medical devices through the forgery of compliance certificates on these medical devices and the sale of low-quality and non-warranty-serviced medical products for budget funds". That is, products that should be completely safe for the health of citizens have not actually undergone the European standards certification procedure.
The proceedings are opened under Part 5 of Article 191 of the Criminal Code: misappropriation, embezzlement of property, or seizure of it by abuse of office. Thus, the schemers face up to 12 years of imprisonment.
In March-April 2019, at the request of an NPU investigator, the Pechersk District Court of Kyiv made rulings allowing access to the financial-economic documents of about a dozen companies.
All court rulings mention the same legal entities, established in the form of LLC: "Ukrainian Certification Scientific Institute" ("Uni-Cert"), "Cratia LTD", "Cratia Medtehnika", "Healskea Regulatory Services", "Arkhimed Service", "Bureau Cratia", "Healskea", "Landmark Legal", "Professional Regulatory Services". The ruling also mentions about twenty individual entrepreneurs (however, their complete data is not published in public access by the court). By the way, the firm "Cratia" had previously been at the center of a "24 channel" journalistic investigation regarding fraud on the drug market.
Why a certificate is needed
Since 2013, Ukraine has taken a course on changing the rules for the technical access of medical products to the consumer market according to the European model. At that time, the government adopted resolutions on a gradual transition to conformity assessment procedures for medical products to technical regulations. It was decided that from the summer of 2017, medical products could only be supplied after certain companies assess their conformity to technical regulations and issue a conformity certificate.
In 2014, the Ministry of Economic Development issued permits (appointments) for conducting this activity to a number of private and state-owned firms. This was practically done arbitrarily since the rules of the game according to European standards had not yet been developed. At that time, in the same way, permission to be a conformity assessment body (CAB) was granted to "Uni-Cert".
Many similar firms had already been feeding alongside state bodies for years, providing so-called consulting services. In fact, these were intermediary "services" that allowed suppliers of medical products (manufacturers, importers) to receive registration certificates for medical products from the State Service of Medicines under the already canceled procedure. "Cratia", by the way, was also one of those organizations engaged in consulting services near state authorities. However, in 2014, it did not receive the status of a certification body. Probably because it was unable to meet even the minimum requirements for its operation.
But here’s the hitch. Members of parliament decided to harmonize legislation with EU directives and WTO rules. In early 2015, a new law "On Technical Regulations and Conformity Assessment" was adopted. At that time, conformity assessment bodies in different industries were appointed without any limitations on their scope of assignment. There were no clear markers of the requirements these bodies should meet for state accreditation. It should be understood that issuing a certificate of conformity by such CABs to technical regulations is full legalization of the product on the market with the exclusive responsibility of this body. State bodies conduct only market surveillance of products that are already being sold.
Since 2016, the Ministry of Economic Development began appointing bodies according to new requirements. And what about those appointed in 2014? It turns out they were given an opportunity (transition period) to undergo new accreditation until 2019.
It seems our heroes decided to take advantage of these free vacations. The criminal proceedings figure "Uni-Cert" still hold the old assignment according to non-existing legislation and, disregarding everything, harvests the market. Kind of reaper, collegian, and flutist rolled into one. But freebies end sooner or later, fortune in the form of inquisitive investigators enters the game. It seems that the lucky "wolf ticket" was drawn by our publication’s heroes.
The Kraken named Bahryeyev-Romanyok
In the mentioned court materials, there is scarce information about the mutual role in the scheme of "Uni-Cert" and the consulting company "Cratia". It is known that "during the pre-trial investigation, it was established that officials of authorized certification bodies" (obviously, "Uni-Cert") "during work on assessing conformity of medical products, equipment and production sites being imported ... violations of Technical Regulation requirements ... established by Cabinet of Ministers of Ukraine Resolutions No.753, 754, 755 dated 02.10.2013, and also realization under budget funds of medical products, not confirmed per safety and efficiency indicators and without warranty service" .
It has also been established during the investigation that "Cratia LTD" was "a counterparty with the certification body of medical products and issues certificates of conformity for medical products with possible violations of requirements of Technical Regulations…" .
In connection with this formulation, a search is being conducted in the above-listed companies. As we researched, these firms are connected by common owners. According to an analysis of open data from the state register, the beneficiaries of this scheme are Maksym Bahryeyev and Mykola Romanyok. According to some information, these partners have been in conflict since the last year and are supposedly litigating over control of "Uni-Cert".
We will not list all connections between firms operating under the "Cratia" sign. Tracking them is very easy through open state registries. Let’s provide only key information. Leadership and ownership of these firms rhythmically shuffled like in a swing dance. The main activities of the companies are services: consulting, translation, information, etc. Some of them are registered at one address: Kyiv, Baggovutivska Street, 17-21 (6th floor).
Currently, most of these firms are formally owned by Halyna Bahryeyeva through LLC "Professional Regulatory Services" (also under investigation). According to journalists of "24 channel", she is probably the mother of Maksym Bahryeyev. Maksym was or is a director/owner of some of the listed firms. In "Cratia LTD" itself, he is not officially listed as a director or leader. The beneficiary of the firm is again Halyna Bahryeyeva. Moreover, on the "Cratia" website (cratia.ua), it is mentioned that this is the business of LLC "Cratia" (without the word "LTD"). On his FB page, Maksym Bahryeyev calls himself a managing partner of Cratia.
Indeed, the firm simply "Cratia" is in the state register. Interestingly, it is not mentioned in court rulings on certificate fraud – only "Cratia LTD". Simply "Cratia" is also owned by Halyna. Until March 2019, the firm was in liquidation, likely because its tax debt amounted to 9.5 thousand UAH, and the company’s accounts were under arrest. Its director (also until March) was Maksym Bahryeyev. From March, the firm is no longer being liquidated. The director of "Cratia" in the register is now some Lytvynchuk Dmytro. – presumably just a placeholder. On "Cratia’s" website, Maksym Bahryeyev is now listed as an advisor to the firm, and the executive director is Iryna Burtseva (Lytvynchuk is not mentioned at all). In her turn, Iryna Burtseva is officially the director of "Cratia LTD" and "Cratia Medtekhnika", which are involved in the criminal proceedings.
In his private life, Maksym Bahryeyev also likes to play "mafia":
As we mentioned above, "Cratia" (both its versions) has already been the subject of journalistic investigations. In particular, "24 channel" in 2018 concluded that suppliers bear unjustifiable costs during the registration of drugs in the Ukrainian market. It concerns the unofficial part of artificial charges "thanks to intermediary firms allegedly providing consulting services".
According to the investigators’ opinion, "a notable player in this field is Maksym Bahryeyev’s Cratia company". The investigation also mentioned some of Bahryeyev’s companies that are now under investigation. But interestingly, the journalists tracked another company of his registered in a foreign jurisdiction: Cratia LTD (Reg. № 08022026, Address: Suite 23031, 8 Shepherd Market Mayfair W1J 7JY London). Over 23,000 firms are registered at this address. The publication assumed that "this is where Ukrainian patients’ money accumulates".
It is possible that "Cratia’s" activities deserve the interest not only of the National Police but also of the State Fiscal Service with the involvement of international institutions. Recall that the investigation into certificate forgery involves twenty more individual entrepreneurs. Doesn’t this remind you of the notorious stories of money laundering involving a series of consulting information firms, firms opened in foreign jurisdictions, and networks of small entrepreneurs (shell companies)?
Bahryeyev VS Romanyok?
Another hero of this publication, Mykola Romanyok, at a certain time, was listed as the commercial director on the "Cratia" website and, in several publications, was mentioned as a "Cratia partner" along with Bahryeyev.
Romanyok also appeared in companies that are currently under the National Police’s criminal investigation. He was the manager at "Landmark Legal". He was a manager and founder (along with "Cratia LTD" and Bahreev) at "Healskea". He owns "Arkhimed Service".
According to some information, he seems to have had a falling out with Maksym Bahryeyev. Who or what might have driven a wedge into the sweet couple’s solid alliance is currently unknown. However, there is currently no data on his role in the life of the firm on the "Cratia" website. Out of sight, out of mind. Presumably, they are engaged in an absentee economic dispute in court over the possibly affiliated asset – "Uni-Cert".
This connection and data from the ruling about contractual relationships between "Cratia LTD" and "Uni-Cert" indirectly indicate that the conformity assessment body "Uni-Cert", appointed under the old legislation, violates one of the fundamental principles of operations – impartiality.
It would be naïve to think that Bahryeyev or Romanyok openly surfaced as founders of "Uni-Cert". As we can see, they are quite good at juggling corporate rights.
So back by November 2018, the owners of "Uni-Cert" were some Volodymyr Bilichenko and Andriy Sozanskyi.
We couldn’t find any interesting information about Bilichenko – from the state registry, it’s only known that he resides in one of the villages in Chernihiv oblast!!! (remind you: the firm is Kyiv based, issuing permits for selling medical products).
However, the Kyiv resident Andriy Sozanskyi is exactly the figure indirectly indicating the control of "Uni-Cert" by the ex-partners of "Cratia" (Romanyok and Bahryeyev). According to his personal information on FB, Sozanskyi works in one of the commercial firms. Apparently, he is a close friend of Mykola Romanyok, they are friends on Facebook, and they spent time together enthusiastically during the New Year’s festivities.
In the photo above: far left Mykola Romanyok, far right Andriy Sozanskyi
In the photo above: far left Mykola Romanyok, far right Andriy Sozanskyi
Meanwhile, Andriy Sozanskyi has not shone as an expert in the field of drug and medical product markets.
Understandably, these are only indirect proofs of affiliation of firms through common owners. However, the rumors of an ongoing active battle with possible real beneficiaries of "Uni-Cert" are indicated by several court cases in economic courts.
As of April 2019, 100% of "Uni-Cert" was concentrated by some Murat Prokopov. A person with such initials also appears among Bahreev’s friends on FB. According to Murat Prokopov’s FB page, he is the operations director at the consulting company the8790.
And judging by the caption on this photo, Bahryeyev and Prokopov are friends not only in virtual social networks:
The change in ownership of "Uni-Cert" is accompanied by several court cases in the Economic Court of Kyiv, the Cassation Economic Court, and the Northern Economic Court of Appeal. In particular, Andriy Sozanskyi (a possible friend of Romaniok) is attempting to appeal transactions related to ownership change and cancel registration records. Murat Prokopov (likely Bahreev’s friend) and LLC "Uni-Cert" are also parties in this matter. The photo below is one example of court disputes:
We shall not delve into analyzing why and what the lawsuits aim for. But, clearly, it’s a fight over corporate rights to the firm – a certification body with authorization competencies. And by a double stroke of coincidence, this fight seems to be between possible friends of Bahryeyev and Romanyok.
Of course, from these signs, we cannot definitely establish the affiliation of "Cratia" and "Uni-Cert" firms. But we hope that law enforcement authorities will take our information on the court battle between Bahryeyev’s and Romanyok’s friends into account. And they will assess all the pathetic grandmasters’ chess moves, considering the Criminal Code norms on twelve-year punishment. At the same time, the public and the Ministry of Health may begin to demand that the Ministry of Economic Development executes Ukraine’s obligations to the EU. And finally compel all the temporary "bahreevs" from 2014 to work by market rules, caring for Ukrainians’ health.
