Georgian Defence Minister on BBC investigation: “robbery of pensioners” of friendly countries continuation of “state robbery” by UNM Gov’t

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.

Burchuladze’s comment followed the BBC’s investigation into a fraudulent “call centre” scheme allegedly involving Kezerashvili, made public in a report that last week detailed a global network of a scam operation targeting individuals with offers of investing their savings for profits.

In his remarks over the matter, Burchuladze noted “as much as possible” would be done to support law enforcement in ensuring “such schemes no longer work in Europe or in Georgia”.

“It was an organised robbery of the state by the former Government. This story did not end with this robbery - its continuation was that the pensioners of our friendly countries were robbed. Of course, this is very regrettable for us, and we will always do our best to support the law enforcement so that such schemes no longer work in Europe or in Georgia”, Burchuladze said.

The Minister also stressed the domestic law enforcement worked “closely” with counterparts from partner countries on the case, with “quite good results” in the joint investigations.

In BBC Eye, a documentary investigative series, the broadcaster said it had spent over a year looking into the global fraudulent trading network of hundreds of investment brands scamming targets. The investigation revealed for the first time the scale of the fraud, as well as the identities of individuals who appear to be behind it.

The network is known to police as the Milton Group, a name originally used by the scammers themselves but abandoned in 2020. The BBC identified 152 brands, including the Georgian-based Solo Capitals, that appear to be part of the network.

The broadcaster explained operators of the scheme contacted their targets and offered opportunities for making profit, or sometimes offering them help in recovering funds they had already lost in previous scams. A majority of their victims signed up after being shown ads on social media.

It also said Kezerashvili’s involvement in the operations had been shown by Panama Papers, the 11.5 million documents leaked in 2016 to show financial dealings of wealthy individuals and officials across the world.

Kezerashvili told the BBC via his lawyers that he strongly denied any involvement with the Milton Group, or that he gained financially from scams.

The former Minister 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.