Misappropriation and embezzlement of funds is one of the most common economic crimes regulated by Article 182 of the Criminal Code of Georgia. This crime involves the unlawful appropriation or dissipation of another person's monetary funds when such property was legally entrusted to the offender. Unlike theft, where a person secretly seizes another's property, in the case of misappropriation, the person (e.g., an accountant, cashier, director, or manager) has legitimate access to finances but abuses this trust. In the modern business environment, financial misappropriation is often carried out through complex schemes involving accounting manipulations, fictitious transactions, and bank transfers. This crime poses a serious threat not only to the financial stability of the company but also to the freedom and reputation of the accused. The severity of the punishment depends on the amount misappropriated and aggravating circumstances (e.g., abuse of official position). The involvement of a qualified lawyer is essential to distinguish between managerial error, financial loss, and intentional criminal offense.
What does Misappropriation of Funds Defense service cover?
Our platform's lawyers, specializing in white-collar crimes, offer comprehensive legal assistance:
- Analysis of financial audit: Detailed study of the audit report conducted by the prosecution and detection of inaccuracies.
- Forensic Accounting: Engaging independent financial experts to determine the actual movement of funds and refute the fact of misappropriation.
- Document expertise: Legal assessment of cash income and expenditure orders, bank statements, and contracts.
- Proving lack of intent: Arguing that the spending of funds served the company's interests (e.g., representation expenses) and was not for personal gain.
- Plea bargaining: Negotiating with the Prosecutor's Office and the victim regarding a schedule for compensation of damages, which is often the basis for mitigation of sentence or probation.
Common Situations and Scenarios
Charges of misappropriation of funds often arise in the following cases:
- Cash shortage: When a cashier or a person with material liability is accused of a lack of cash at the end of the day or during inventory.
- Misuse of corporate cards: Use of company funds by a director or employee for personal purposes (vacation, shopping).
- Fictitious bonuses and salary supplements: An accountant transferring more money to their own account than provided for in the contract.
- Kickbacks and fictitious services: Transferring funds for a non-existent service, from which a part is returned to the transferor.
Georgian Legislation and Legal Framework
This crime is regulated by Article 182 of the Criminal Code (Misappropriation or Embezzlement). Legislation distinguishes the crime based on amount: "large amount" (more than 10,000 GEL) and "particularly large amount" (more than 100,000 GEL). These circumstances significantly aggravate the punishment, which may include imprisonment from 7 to 11 years. It is important to determine whether the person was a "special subject" (someone to whom the property was legally entrusted). The lawyer's strategy is often based on separating civil legal relations from criminal offenses, for example, when it comes to taking a loan from the cash register rather than stealing it.
Service Delivery Process
The process begins with a detailed study of financial documentation. The lawyer investigates how funds were disposed of and whether there were appropriate permissions from management. If a shortage is evident, the best strategy is often restitution (compensation for damages) at the investigation stage, which significantly increases the chances of reaching a plea agreement.
Why choose a specialist on Legal.ge?
Financial misappropriation cases require a lawyer who is well-versed not only in criminal law but also in accounting and banking. Specialists represented on Legal.ge work in tandem with auditors to effectively protect your interests and avoid baseless accusations.
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