Georgian Prosecutor General’s Office uncovers “new links” between ex-official Kezerashvili and fraudulent scam

Georgia’s Prosecutor General’s Office on Friday announced new findings in investigations of alleged fraudulent schemes over the recent time had shown over one million dollars had been transferred to bank accounts of David Kezerashvili, the country's wanted former Defence Minister, and his relatives by a suspect involved in a “call centre” scam. 

This scheme defrauded German, Slovenian and Slovak nationals of €3.17 million between 2019 and 2021, it said, adding the body had arrested four individuals and charged them with fraud and money laundering as part of an organised group following the Office’s collaboration with domestic and German law enforcement authorities. Two other individuals and one legal entity have also been indicted in absentia.

The investigation revealed Georgian and foreign nationals formed a criminal group through Morgan Limited LLC, a company established by a Ukrainian national in Georgia. 

Operating between 2019 and 2021, the group aimed to “generate illicit proceeds” and launder money. A call centre set up by Morgan Limited LLC contacted European citizens using “various communication methods” and convinced them to invest in fake trading platforms. 

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The scammers also established remote connections to victims' devices, registered them on trading and cryptocurrency exchange platforms, and transferred virtual assets to their own e-wallets.

The fraudulently acquired assets were later integrated into the economy through bank accounts and by purchasing property and real estate.

Citing banking information, the Office said one of the arrested suspects had transferred over one million dollars to the bank accounts of Kezerashvili, his sister, and his niece during the period of the fraud.

One of the detainees led a “large fraudulent call centre” to operate in Tbilisi before investigative actions conducted on Thursday resulted in seizure of “hundreds of computers, mobile phones, notes, and other crime-related materials”. More than $800,000 in cash, along with valuable items and vehicles, were confiscated in the effort, the body added. 

It also said it would seek an extension of the defendants' pretrial detention, and added the charges carried a potential sentence of nine to 12 years in prison.

The Office has conducted several large-scale operations against fraudulent call centres in Georgia between 2021-2024, resulting in searches of multiple call centres, residential flats, cars, and workplaces. 

Hundreds of electronic devices, documents, and large amounts of cash have been seized and criminal proceedings initiated against 89 individuals and seven legal entities involved in fraudulent call centres, the agency said. 

Kezerashvili is wanted in Georgia for embezzlement of state funds during his time as the Defence Minister in the United National Movement Government between 2006-2008, with the Tbilisi Court of Appeals last year upholding the City Court verdict on the case and ordering him to pay €5,060,000 in compensation to the Ministry.

The same year, the British Broadcasting Corporation report said 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 a scheme in which fake call centre operators pretending to represent legitimate agencies offered investment opportunities to their targets in Europe while defrauding them of funds.