Apartments for Rent in Odessa, Ukraine

Thousands of demonstrators urge probe into massive Kyiv real estate fraud

(AP) About 8,000 demonstrators rallied Thursday in the Ukrainian capital, demanding a thorough investigation into a massive real estate fraud.

Thousands of Ukrainians bought new apartments in Kyiv that were secretly being sold to multiple buyers and never completed. Police have estimated that some 1,500 people might have fallen victim to the scam, losing an equivalent of US$79 million (-67 million).

The owners of the company accused of fraud, Elita-Tsentr, have fled the country and have been put on the international wanted list, Ukrainian media reported.

Protesters gathered outside the Kyiv city council. In February, President Viktor Yushchenko ordered his government to help sort out the scandal.

The scam occurred as real estate prices in the Ukrainian capital shot up, leaving many buyers desperate for a deal.

Buyers were offered lower prices if they purchased yet-unbuilt apartments.

Problems emerged earlier this year when buyers discovered that their apartments had been sold to others and that construction was behind schedule.

Mar 02 2006

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