Illegal obtaining of credit, often known as "bank fraud," is a specific economic crime involving misleading a bank or other creditor to obtain a loan, improve its terms, or avoid obligations. This act is regulated by Article 208 of the Criminal Code of Georgia. The crime often manifests when an individual or company director submits false certificates about financial status, inflated turnovers, or non-existent collateral to the bank. Under stricter bank monitoring, such facts are quickly revealed, and the case is transferred to investigative bodies. For the accused, this means not only criminal prosecution but also the total destruction of credit reputation and loss of property. Timely involvement of a lawyer is necessary to distinguish intentional fraud from insolvency caused by business failure.
What does Bank Fraud Defense service cover?
Lawyers on our platform offer specialized services tailored to the specifics of banking crimes:
- Analysis of credit file: Legal expertise of all documents submitted to the bank (applications, certificates, agreements).
- Audit of financial status: Conducting an independent audit to prove that the borrower actually had the ability to pay at the time of taking the loan.
- Representation with the bank and investigation: Communicating with bank lawyers and investigators to avoid the initiation of criminal prosecution if the dispute can be resolved civilly.
- Protection of collateral: Stopping the illegal realization of mortgaged property until the investigation is completed.
- Plea agreement: Negotiating with the Prosecutor's Office during the case proceedings for termination of the case or mitigation of the sentence in exchange for compensation for damages.
Common Situations and Scenarios
Crimes under Article 208 are often related to the following actions:
- Falsification of income: Submitting a fake salary certificate or business income statement to get loan approval.
- Violation of purpose: Taking an agro-credit or business loan for a specific project and using the funds for personal purposes (buying a car, paying off debts).
- Double bookkeeping: Presenting one ("embellished") balance sheet to the bank and another to the tax authority.
- Concealment of property: Hiding information that the property to be used as collateral is already encumbered by other obligations or seized.
- Fictitious guarantors: Falsifying data of guarantors or misleading them to obtain a loan.
Georgian Legislation and Legal Framework
The issue is directly regulated by Article 208 of the Criminal Code of Georgia (Illegal Obtaining of Credit). The law makes it punishable to submit false data about one's financial condition or business activity to a creditor to obtain a credit, subsidy, or other monetary aid, which caused significant damage. If the act does not contain signs of Article 208 (for example, there is no "significant damage"), it may be qualified as fraud (Article 180) or forgery of a document (Article 362). The defense strategy is often based on proving that the inaccuracy of data was a technical error and not an intentional lie, or that the bank had the opportunity to verify the information itself.
Service Delivery Process
The process begins with a detailed consultation, where the lawyer studies the credit history and the problem that has arisen. If the case is still at the stage of the bank's internal investigation, the lawyer tries to negotiate a loan restructuring so that the case is not transferred to the police. If the investigation has already begun, the lawyer joins interrogations and collects exculpatory evidence. The priority is to separate the civil dispute from the criminal offense.
Why choose a specialist on Legal.ge?
Banking crimes require a lawyer who is well-versed not only in criminal law but also in banking regulations and financial analysis. Legal.ge gives you access to such narrow-profile experts. Unqualified defense can lead to severe consequences and imprisonment. Trust verified specialists on Legal.ge to protect your rights and future.
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