Ukrainian investigators have uncovered new alleged instances of large-scale financial fraud involving a prominent businessman, the Security Service of Ukraine said, in a case widely understood to concern oligarch Ihor Kolomoisky and PrivatBank, reported Interfax-Ukraine.

In a statement, the SBU and the Office of the Prosecutor General of Ukraine said they had documented additional episodes of alleged criminal activity by the former beneficial owner of one of the country’s largest banks.

According to investigators, more than UAH100mn (around $2.5mn) were misappropriated in 2014 through a scheme involving the withdrawal of credit resources and their subsequent laundering through a network of affiliated companies.

The SBU said loans were issued to entities linked to the businessman without adequate collateral or genuine business purpose. The funds were then transferred through multiple legal entities and individuals to create the appearance of legitimate financial transactions.

“Some of these assets ultimately ended up in the personal accounts of the organisers under the guise of contract performance,” the agency said, adding that in one instance hundreds of millions of hryvnias were transferred to the suspect’s personal account from a company under his control.

Authorities said the scheme relied on so-called “re-lending” practices, using chains of controlled firms to recycle borrowed funds. Bank officials and executives of affiliated companies are also suspected of involvement.

The businessman has been formally notified of suspicion under charges of large-scale fraud committed by an organised group, the SBU said. The total losses are still being verified as part of the ongoing investigation.

Kolomoisky, who has been in custody since September 2023, has previously denied wrongdoing. He faces multiple allegations, including the misappropriation of billions of hryvnias, money laundering and other offences. An English court has also ordered him and his associates to pay more than $3bn in a separate case related to the bank.