---
title: "Mortgage Fraud Defense"
url: "https://legal.ge/en/service/crim-criminal-law-en/mortgage-fraud-defense-en"
field: "Criminal Law"
description: "Mortgage fraud under Articles 180 and 208 of the Criminal Code of Georgia: penalties from a fine up to 10 years, false certificates and defense. Legal.ge."
reviewed: "2026-07-09"
updated: "2026-10-14"
publisher: "legal.ge"
---

# Mortgage Fraud Defense

> Source: legal.ge, https://legal.ge/en/service/crim-criminal-law-en/mortgage-fraud-defense-en

## 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.

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### Under which articles is mortgage fraud punished?

Such cases are qualified under Article 180 of the Criminal Code (fraud) and Article 208 (unlawful obtaining of credit). The specific qualification depends on the facts – whether there was deception and an aim of appropriation, and whether a false certificate was supplied to the creditor.

### What penalty does part 1 of Article 208 provide for?

Supplying a bank or another creditor with a false certificate of economic or financial condition in connection with credit, or using a targeted credit contrary to its designated purpose with significant damage, is punished by a fine, house arrest for six months to two years, or imprisonment from two to five years.

### What is the difference between Article 180 and Article 208?

Article 180 is the general fraud norm – appropriating property by deception; Article 208 concerns credit relationships – supplying a creditor with a false certificate and using a targeted credit contrary to its purpose. Their sanctions differ as well: Article 180 has four parts, Article 208 two.

### When is damage considered significant?

This is determined by other provisions and not by the text of the article itself; establishing significant damage depends on the evidence, and it is precisely this circumstance that often becomes the subject of the defense's review.

### Why do I need a lawyer in such a case?

The case belongs to the category of complex economic crimes and requires analysis of financial documentation. A lawyer verifies the qualification, the signs of a false certificate, the damage and the intent.