Motor Sich's former president Vyacheslav Bohuslayev was detained in Monaco on fraud charges linked to a $650 million asset scheme, Ukraine's Security Service (SBU) announced on May 2.
Vyacheslav Bohuslayev, the former president of Motor Sich, Ukraine's leading aircraft engine manufacturer, is kept in custody on charges of collaboration with Russia.
Investigators claim Oleksandr Bohuslayev helped his father illegally obtain shares in the strategic defense manufacturer, before selling them to third parties.
He faces up to 12 years in prison.
The scheme reportedly began before Russia's full-scale invasion when the then-president of Motor Sich organized a company asset inventory that artificially lowered the value of its shares.
He subsequently purchased 65% of these devalued shares and transferred most of them to six offshore entities owned by his son, authorities claim.
The suspects allegedly sold the misappropriated assets to foreign companies and used the proceeds to purchase luxury real estate across the European Union.
The arrest resulted from a joint operation between SBU, the Prosecutor General's Office, and law enforcement in Monaco and France.
The SBU reported that searches were conducted simultaneously at the coastal villa in Monaco and at properties belonging to affiliated individuals in Zaporizhzhia, where Motor Sich headquarters are located.
Former Motor Sich president Vyacheslav Bohuslayev was arrested in October 2022 and charged with working for Russia.
Bohuslayev and one of his deputies, Oleh Dzyuba, were accused of conspiring to supply engine parts for Russian helicopters. Bohuslayev maintains Russian citizenship.
The corporate rights of five major companies, including Motor Sich, were seized "for the needs of the state" and came under Defense Ministry management on Nov. 6, 2022.
Bohuslayev now faces additional criminal charges related to his son's fraud scheme, SBU says.
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