Prosecution Service of Georgia, in cooperation with the law enforcement authorities of the Federal Republic of Germany and as part of an investigative team also involving the State Security Service of Georgia and the Investigation Service of the Ministry of Finance, has solved another transnational crime, the Georgian Prosecutor’s Office reported.
“Four individuals engaged in call center activities have been arrested and charged with fraud and money laundering by an organized group in especially large amount. Additionally, two other individuals and one legal entity have also been indicted in absentia.
The investigation has ascertained that Georgian and foreign nationals formed a structural criminal group as part of Morgan Limited LLC (the company founded by a Ukrainian national in Georgia). The group operated in 2019-2021, with the objective of gaining illicit proceeds and subsequently laundering money.
The employees of the call center set up in the premises leased by Morgan Limited LLC contacted European citizens via different means of communication and deceived them into making purportedly profitable investments in pre-created fake trade platforms.
The employees of the call center established remote connections to the victims’ devices, registered them on trade and cryptocurrency exchange platforms and transferred the virtual assets bought with the victims’ funds to the e-wallets under the control of the criminal organization. They simultaneously showed the victims increases in their investments by simulated activities on the fake platforms. In addition, they terminated all communication with the victims if the latter requested the invested funds or the profits to be returned to them.
In this manner, the members of the organized criminal group defrauded the citizens of the Federal Republic of Germany, the Republic of Slovenia and the Slovak Republic of approximately EUR 3,170,000.
In order to render the fraudulently-acquired assets legal, the members of the organized criminal group placed the mentioned funds in the banks accounts under their control and integrated them into the economy, including by purchasing movable and immovable properties. The analysis of the information seized from the bank sector has determined that one of the managers of the call center operating under the name of Morgan Limited LLC, who is in custody based on an arrest warrant issued as part of the measures carried out, transferred over one million dollars to Davit Kezerashvili’s, his sister’s and his niece’s/nephew’s bank accounts in the period when the citizens of the European countries were defrauded. The investigation in this matter continues actively, including with the involvement of our foreign colleagues. The public will additionally be informed immediately after a summary decision has been made.
Under the framework of the current investigation, it was also determined that, under the leadership of one of the detainees, a large fraudulent call center was still operating in Tbilisi. Investigative actions conducted on September 5 of this year resulted in the seizure of hundreds of computers, mobile phones, notes, and other crime-related information. Other individuals involved in the activities of the fraudulent call center have also been identified.
As a result of searches conducted in residential apartments belonging to the defendants, more than USD 800,000 in cash, along with expensive items and vehicles, were seized. Based on a court warrant, assets worth several million GEL, belonging to the defendants and their associates, were seized—including their bank accounts, as well as real and movable property—thus preventing further disposal or concealment.
The Prosecution Service will carry out the necessary legal procedures to ensure the confiscation of assets of criminal origin for the benefit of the state.
The Prosecution Service will apply to the court to request an extension of the defendants’ detention as a preventive measure within the time limit set by law. The charges brought carry a sentence of 9 to 12 years of imprisonment.
We remind the public that between 2021 and 2024, the Prosecution Service conducted several large-scale operations against fraudulent call centers in Georgia.
As part of these operations, and with the involvement of the Prosecution Service, the Ministry of Internal Affairs, the Investigative Service of the Ministry of Finance, and the State Security Service, numerous fraudulent call centers, dozens of individuals, their residential apartments, cars, and workplaces were searched. Hundreds of electronic devices, documents, and a large amount of cash were seized.
As a result of the measures taken, the Prosecution Service of Georgia has initiated criminal prosecution against a total of 89 individuals and seven legal entities involved in operating fraudulent call centers. Hundreds of citizens from various European countries are known to be victims, with the total damage exceeding GEL 30 million. Additionally, assets allegedly obtained through criminal means, valued at over GEL 90 million, have also been frozen.
The effective fight against transnational crime is a top priority for the Prosecution Service of Georgia. At this stage, the Prosecution Service is participating in two international joint investigative teams and, in coordination with Eurojust, continues investigating the so-called fraudulent call centers to identify and expose additional individuals or legal entities involved,” the statement reads.
