Ukrainian president orders government to help sort out massive Kyiv real estate scandal

(AP) President Viktor Yushchenko ordered his government Saturday to help sort out a massive Kyiv real estate scandal in which thousands of Ukrainians bought new apartments that were secretly being sold to multiple buyers and were never completed.

Police have estimated that some 1,500 people might havefallen victim to the scam, losing a total of 400 million hryvna ($79 million; 67 million).

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

Yushchenko's orders were conveyed at a meeting he called to determine how real estate fraud could be spotted earlier and to discuss ways to help the cheated investors. Yushchenko did not participate in the meeting, which was led by a senior adviser, the president's office said.

Among the proposals being considered were tightening the laws governing the use of land for residential housing projects and increasing control over construction and financing.

The scam allegedly occurred as real estate prices in the capital shot up, leaving many home buyers desperate for a deal. According to media reports, buyers were offered low prices to get in early and purchase as-yet-unbuilt apartments. Problems emerged earlier this year when buyers discovered that others had been sold the same unit and that construction was visibly behind schedule.

Feb 20, 2006