The legal and evidential questions
Fraudulent Borrowing and Financial Information. The first task is to map statutory role, authority and actual control. The statutory starting point shown on this page is Article 180 (Fraud). The investigation must distinguish alleged deceptive appropriation from contractual non-performance, commercial risk or a later inability to pay.
Assemble the application as submitted, supporting financial statements, lender questions, approvals, disbursement and use-of-funds evidence, repayment history and decision-maker communications.
Business failure is not automatically criminal
Financial distress, a failed investment or an unpaid debt requires separation from alleged concealment, falsification or deceit. Actual control, duty, intent, records and use of funds must be established.
Questions to answer first
Map statutory role, authority and actual control
Preserve accounting, creditor and payment records
Distinguish business failure from intentional concealment or deceit
Separate company, director, adviser and third-party interests
Evidence that may matter
- Accounting and insolvency files
- Loan applications and use-of-funds records
- Card, payment and authentication data
- Securities, investor and disclosure documents
- Banking, valuation and forensic accounting material
Criminal Code articles to check
Fraud
The investigation must distinguish alleged deceptive appropriation from contractual non-performance, commercial risk or a later inability to pay.
Read full Article 180 text on this pageRead the relevant Criminal Code provisions
The panel below reproduces the available official English wording for convenient reading. Check the current Georgian text and the exact article part before relying on it, because later amendments may not yet appear in translation.
Article 180Fraud+
1. Fraud, i.e. taking property of another person or obtaining of title to the property by deceit for its unlawful appropriation, –
shall be punished by a fine or community service from 170 to 200 hours, or by corrective labour or house arrest for a term of one to two years, or by imprisonment for a term of two to four years.
2. The same act:
a) committed by more than one person with a preliminary agreement;
b) causing substantial damage, –
shall be punished by a fine or by imprisonment for a term of four to seven years.
3. The same act committed:
a) using the official position;
b) in large quantities;
c) repeatedly, –
shall be punished by a fine or by imprisonment for a term of six to nine years.
4. The same act committed:
a) by an organised group;
b) by a person who has two or more previous convictions for unlawful appropriation or extortion of another person’s property, –
shall be punished by imprisonment for a term of seven to ten years.
The consolidated official source is listed in the source section at the end of this guide.
How the process may develop
Primary sources for this guide
Before acting, compare this guide with the current Georgian text and the exact document served in the case. The official English translation may not include the latest amendment.
Criminal Procedure Code of Georgia↗︎Official consolidated Criminal Code — current text & PDF↗︎Constitution of Georgia↗︎