The Prosecutor’s Office of Georgia has launched criminal proceedings against the owner of Crystal Group, Vladimer Stepaniani, on charges of illegal entrepreneurial activity and money laundering. The Prosecutor’s Office released an official statement regarding the case.

According to the investigation, the primary activity of Bakuriani Business Group LLC, a company within the Crystal Group, involved constructing hotel-type residential complexes in the Bakuriani township and selling them afterwards.

Vladimer Stepaniani, who oversaw the company’s daily operations, allegedly violated both the general development plan for Bakuriani and the conditions of the construction permit issued by the relevant authorities. He subsequently sold the illegally constructed residential units.

As a result, Bakuriani Business Group LLC obtained a significant income amounting to GEL 1,894,925.

To legitimize the illegally acquired funds, the accused reportedly deposited part of the money into the company’s bank accounts and used the rest to purchase real estate and movable property registered under the company, himself, and related individuals.

Stepaniani has been charged under Articles 192 and 194 of the Criminal Code of Georgia—illegal entrepreneurial activity and legalization of illegal income—which carry a penalty of up to twelve years in prison.

“The Prosecutor’s Office will petition the court within the legally prescribed timeframe to impose pre-trial detention as a preventive measure,” the statement concluded.