Embezzlement, regulated by Article 182 of the Criminal Code of Georgia, involves the unlawful alienation, consumption, or spending of another person's item or property right when such property was legally entrusted to the person. Embezzlement differs from misappropriation in that the property does not become the offender's ownership but is spent or transferred to third parties illegally. This crime is common in corporate environments where directors, managers, or public officials have access to financial resources. Charges may include misappropriation of company funds, expensive unnecessary purchases, or selling property below market value. The punishment is quite severe and includes imprisonment, especially if the act is committed using an official position or in a large amount. For the defense, it is crucial to prove that the spending was done in the company's interest and fell within reasonable business risk.
What does Embezzlement Defense service cover?
White-collar crime lawyers offer:
- Audit of financial transactions: Detailed study of disputed transfers and expenses to determine their economic feasibility and connection to company activities.
- Justification of business decisions: Arguing that the alienation or spending of property was a necessary business decision at the time, even if it later turned out to be unprofitable (Business Judgment Rule principle).
- Forensic expertise: Tracing the movement of funds to confirm that the accused did not receive personal benefit.
- Plea agreement: Negotiating with the state or the victim company for case termination or sentence mitigation in exchange for compensation for damages.
- Distinguishing civil liability: Arguing that the case concerns a corporate dispute and not a criminal offense.
Common Situations and Scenarios
Embezzlement charges are often related to:
- Misspending: Paying for personal travel or restaurants with a corporate card.
- Inefficient procurement: Purchasing goods or services at inflated prices (suspicion of "kickbacks").
- Asset alienation: Selling or gifting company property to related parties.
- Bonus issuance: Issuing unjustified bonuses to oneself or employees.
Georgian Legislation and Legal Framework
Article 182 applies equally to misappropriation and embezzlement, although their content differs. Aggravating circumstances are: group action, use of official position, and large amount (more than 10,000 GEL). The lawyer must prove that the accused did not have criminal intent and acted within the scope of entrusted authority.
Service Delivery Process
The lawyer studies the company charter, director's powers, and specific transactions. If the spending is documented, the defense position is strong. If a shortage is evident, the focus is on compensation for damages.
Why choose a specialist on Legal.ge?
Embezzlement cases require financial and legal knowledge. Lawyers represented on Legal.ge will help you distinguish a managerial error from a criminal offense and protect your reputation.