Criminal case launched in Georgia regarding misappropriation of state funds worth $870,000

Criminal prosecution has been launched in Georgia against three people on charges of embezzling a large amount of public funds by producing false tax documents totaling 2.3 million lari (about $870,000), according to local media with reference to the Investigative Service of the Ministry of Finance of Georgia, Report informs.

The investigation established that the defendants, by prior conspiracy to obtain illegal material benefits on behalf of the companies they managed, issued false VAT invoices, allegedly for construction and repair work. They managed to create a false VAT asset in the amount of 357,791 lari (more than $130,000). Part of this amount - 164,375 lari (more than $60,000) - was used to reduce current tax liabilities, and the remaining amount - 193,416 lari (about $70,000) - was returned from the state budget.

At this stage, appropriate measures are taken to compensate for the damage caused to the state budget.

The investigation is being conducted under the articles of the Criminal Code of Georgia “Fraud”, “Manufacture, sale or use of counterfeit credit or payment cards”, “Causing property damage by deception” and “False entrepreneurship”.

The defendants face prison sentences of six to nine years.