Ukrainian government unit sues in USA, alleging corrupt scheme in vaccine purchases

A unit of the government of Ukraine last week filed suit in federal court in Portland, Oregon, USA, against a US company that is alleged to be part of an international conspiracy involving the fraudulent sale of vaccines and other pharmaceuticals.

The case was brought by Ukrvaktsina - the Ukrainian state-owned enterprise responsible for the procurement and storage of medicines and medical supplies for Ukraine's Ministry of Health. The suit seeks damages for fraud, conspiracy and violations of the Racketeer Influenced and Corrupt Organizations Act ("RICO").

The complaint alleges that, from 2008 through 2009, the US company Olden Group, which is owned by offshore companies registered in Belize and the South Pacific island of Niue, played a key role in a conspiracy to unlawfully mark-up the price of millions of doses of vaccines which were intended for use in the Ukrainian public health system. According to the complaint, Olden and the other conspirators used offshore shell companies to launder the cash proceeds of the scheme through banks in Latvia, the USA and elsewhere. The scheme is alleged to have involved more than $50 million in payments by Ukrvaktsina and the government of Ukraine over a period of several years.