Mortgage Fraud – Under Which Articles It Is Punished
A mortgage loan is a form of credit secured by immovable property, and cases of fraud connected with such transactions, as well as instances of unlawful obtaining of credit, are qualified under two norms of the Criminal Code of Georgia – Article 180 (fraud) and Article 208 (unlawful obtaining of credit). Where both articles appear in the charge, it is decisive to understand exactly what is answered for under which article: this determines both the qualification and the expected penalty.
Article 180 is the general norm and covers the appropriation of another's property, or the acquisition of a property right, by deception. Article 208 addresses credit relationships specifically: supplying a bank or another creditor with a false certificate concerning one's economic or financial condition, and also the use of a targeted credit contrary to its designated purpose. In the context of mortgage transactions the two norms are often considered together, which is why the sanctions of every part of both articles are set out separately below.