Fraudulent scheme reportedly linked with Georgian Ex-Defence Minister involves 33,000 victims, €89 mln - Eurojust
The latest investigation by BBC has linked David Kezerashvili, the wanted former Defence Minister of Georgia in the United National Movement Government, with the fraudulent scheme. Photo: BBC
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A fraudulent scheme linked with David Kezerashvili, the wanted former Defence Minister of Georgia in the United National Movement Government, by an investigation of the British Broadcasting Company has cost at least 33,000 victims in Europe an estimated €89 million, Eurojust said on Thursday.
The European Union agency for criminal justice cooperation said it had coordinated raids along with Europol last month at the request of the German authorities, with five suspects arrested and 15 locations searched in Bulgaria, Romania, Israel and Georgia, in follow-up to actions against the online scam in 2021 and 2022.
The operation in Georgia was headed by the Prosecutor General’s Office and saw 400 law enforcement officers involved, the domestic body said on Thursday.
Eurojust said the criminal network behind the fraud had attracted investors with professional-looking banners on websites, publicity via social media and fraudulent call centre operations in various European countries.
It said the scammers encouraged their victims to initially make small investments of between €200 and €250, presenting prospects of high profits via fake graphics and software to them.
Victims were then contacted by the so-called personal financial advisors who promised even higher returns on bigger investments. These investments were subsequently lost, and the illegal profits paid into the perpetrators’ bank accounts, the EU agency said.
It also added the specific scheme allegedly ran between 2019 and 2021, with suspects in the operations or their associates subsequently setting up “call centres” in Bulgaria and Romania.
BBC named Kezerashvili as the central figure of the scheme in its latest investigative piece.
Eurojust said the latest raids had seen a range of high-value assets seized, including luxury watches, electronic equipment, cash, bitcoins, bank cards and numerous documents and data carriers from suspects.
In its investigative report published on Tuesday, BBC said the Panama Papers - the 11.5 million documents leaked in 2016 to show financial dealings of wealthy individuals and officials across the world - had shown Kezerashvili to be at the centre of the fraudulent scheme.
The former official rejected the allegation earlier this week and announced legal action against BBC to “restore” his reputation and “prove inaccuracies” in the investigative piece.
Kezerashvili is wanted in Georgia for embezzlement of state funds during his time in office between 2006-2008, with the Tbilisi Court of Appeals last month upholding the City Court verdict on the case and ordering him to pay €5,060,000 in compensation to the Ministry of Defence.
The United States Ambassador to Georgia Kelly Degnan on Thursday said the investigation by the British Broadcasting Corporation on alleged links of the wanted former Defence Minister David Kazerashvili with a fraud scheme against European citizens was an “important component” and said she hoped the Georgian authorities would have the opportunity to investigate the allegations in its own inquiry.
Mikheil Sarjveladze, the Chair of the Georgian Parliament's Human Rights Committee from the ruling Georgian Dream party, on Wednesday accused the United National Movement opposition party of being “silent” about alleged links of the wanted former Defence Minister David Kazerashvili with a fraud scheme uncovered by the BBC on Tuesday.
Aleko Elisashvili, the leader of the Citizens opposition party, on Wednesday said David Kezerashvili, the wanted former Defence Minister of Georgia in the United National Movement Government, had “robbed the Georgian army” before moving on to “robbing European pensioners”.
The British public broadcaster BBC on Wednesday revealed its investigation into a fraudulent “call centre” scheme involving David Kezerashvili, a wanted former Defence Minister of Georgia in the United National Movement Government, in a report that detailed a global network of a scam operation targeting customers.
Eurasianet, an independent news organisation based at the US Columbia University’s Harriman Institute, on Friday said questions were mounting in Georgia about the political influence of the wanted former Defence Minister David Kezerashvili after a BBC investigation had identified him as the “lynchpin” of a global scam network.
Georgian Defence Minister Juansher Burchuladze on Monday commented on the BBC investigation that alleged links of the wanted former Defence Minister David Kezerashvili with a fraud scheme in Europe by saying the “robbery” was a continuation of the “organised robbery of the [Georgian] state” by the former United National Movement Government.
Georgian Prime Minister Irakli Garibashvili on Tuesday said the British Broadcasting Corporation’s investigation that alleged links of Georgia’s wanted former Defence Minister David Kezerashvili in an international fraud scheme had led to “truth” being “revealed” in the dealings of the former official, whom he called an “international scammer”.
Georgia’s wanted former Defence Minister David Kezerashvili on Tuesday said the British Broadcasting Corporation’s investigation that alleged his links to an international fraud scheme was a product of a journalist of the Israeli newspaper The Times of Israel, whom he accused of a smear campaign for damaging his “business reputation”.
Irakli Kobakhidze, the Chair of the ruling Georgian Dream party, on Wednesday highlighted “interest” from unspecified groups to see the wanted former Defence Minister David Kezerashvili fund “revolutionary processes” in the country with “his bloody, dirty money”.
The Prosecutor’s Office of Georgia on Saturday said it “intensively” continued to fight against transnational crime involving fraudulent call centre services, together with law enforcement agencies of European partner countries and under the coordination of the European Union Agency for Criminal Justice Cooperation, in order to expose involved individuals and especially organisers of the transnational crimes.
Georgian Prime Minister Irakli Garibashvili on Tuesday said the country’s wanted former Defence Minister David Kezerashvili had “confirmed” he was an “oligarch” and was funding domestic opposition and TV channels with funds “stolen from European pensioners”.
Georgian Parliament Speaker Shalva Papuashvili on Monday called on the country’s State Audit Office to look into income sources of several opposition groups, claiming they were setting up “fake organisations” and attracting foreign donations “illegally” for their political goals.
Boštjan Škrlec, the Vice President of Eurojust, the European Union’s Agency for Criminal Justice Cooperation based in the Hague, on Wednesday hailed Georgia as a “very strong player” in the investigation of complex transnational crime.
Grigol Liluashvili, the head of the Georgian State Security Service, on Thursday hailed the “genuine contribution” of the Georgian Prosecutor General’s Office and the ministries of Internal Affairs and Finance to combating an international fraudulent scheme reportedly involving David Kezerashvili, the wanted former Defence Minister of Georgia under the United National Movement Government.