Under the decision by the Office of the Prosecutor General of Georgia, the charges against A.K., indicted of fraud and legalization of illegal income, has been removed. Totality of evidence did not meet the standard of beyond reasonable doubt, which would make the delivery of judgment of conviction. Based on the foregoing, Tbilisi City Court discontinued prosecution of A.K. launched in 2011 and acquitted them.
According to the indictment, A.K. artificially transferred the capital of JSC Elit Electronics into the company of their relative T.N., director of Batumvachroba LLC, with the aim to evade unpaid bank liabilities and arrears payable to the budget, as well as to relocate material assets of JSC Elit Electronics under their personal disposal. At the same time, T.N., as the director of Batumvachroba LLC, signed a fictitious loan agreements, on the basis whereof, 4,605,000 lari was lent to A.K.
Only 1,193,658 lari were spent purposefully from the received funds while A.K. seized 3,411,342 lari under their control, gaining an ability to unanimously manage the funds gained by deceit from JSC Elit Electronics, exempting the capital from bank and fiscal liabilities while eliminating the opportunity of the joint stock society and the state to grant their lawful demand.
Furthermore, according to the indictment, A.K., while continuing to evade the overdue bank and fiscal liabilities of JSC Elit Electronic and relocating material assets under their management as a natural person, used an auditor’s report containing false content and sold the property located in Isani District to JSC Elit Electronics under artificially inflated price on June 17, 2008, in return of which received the artificially inflated payment – 7,437,205 lari.
With the aim to legalize the funds criminally gained funds and to disguise their actual owner, A.K. had his close associates to invest some of these funds into Techno Boom LLC on the basis of fictitious loan agreements.
As stated in the indictment, A.K. was the de facto owner of the lent funds while through the said fictitious loan agreements signed on the behalf of his associates, they covered the source of origin of the illegally obtained monies and concealed its actual owner, by which A.K. legalized the gains fraudulently received from JSC Elit Electronics and by repaying the loans they formally relocated the funds under their lawful management.
During the substantial consideration at an open court session, evidence in the case were examined, which turned out to be inconsistent, not convincing and unreliable, being circumstantial at their core, which did not serve as the grounds for the court to deliver a judgement of conviction.
Thus, the prosecution renounced the charges due to absence of reliable evidence against A.K., the totality whereof was unable to meet the standard to pass a judgement of conviction, on which basis the court terminated prosecution of the defendant.