Public Funds Misuse Defense in Georgia | Legal.ge

PublicFundsMisuseDefense

What distinguishes embezzlement from theft?

Embezzlement (Article 182) applies when the property was legally entrusted to the person (e.g., an employee or director), whereas theft involves taking property unlawfully.

Can repayment of funds avoid prison?

Repaying the embezzled funds does not automatically close the case, but it is the strongest factor for obtaining a plea bargain and avoiding actual imprisonment.

What is misspending vs. embezzlement?

Misspending might be an administrative violation if done without criminal intent. Embezzlement requires intent to benefit oneself or a third party illegally.

Misappropriation and embezzlement of public funds (Article 182) is a serious economic crime that often comes under public scrutiny. This charge applies not only to public officials but also to directors of state-owned companies and private individuals who were entrusted with state property or budget. The difference between "misappropriation" and "embezzlement" is significant: misappropriation involves illegally converting property into one's own ownership, while embezzlement involves illegally alienating or spending property in favor of a third party. Investigations are often conducted by the State Audit Office or the Prosecutor's Office. The accused are charged with misspending funds, artificially inflated salary supplements, fictitious procurements, and expensive business trips. The defense strategy requires deep financial expertise and auditing knowledge to prove that the spending was legitimate and served the organization's interests.

What does Public Funds Misuse Defense service cover?

Lawyers specializing in financial crimes offer:

Financial revision and Forensic audit: Engaging independent auditors to study disputed transactions and substantiate their economic feasibility.
Checking legality of procurements: Analyzing tender and direct procurement documentation to rule out signs of corrupt deals.
Justifying purpose: Proving that the spending served official purposes (e.g., representation expenses) and was not for personal gain.
Separating civil disputes: Working to shift the case to a civil law context (compensation for damages) rather than criminal prosecution.
Asset protection: Preventing or appealing the seizure of property.

Common Situations and Scenarios

Charges are often related to:

Misspending: Using budget funds for personal purposes (e.g., restaurants, vacations).
Kickbacks: Returning part of the money from state procurements in the form of bribes.
Ghost employees: Paying salaries to employees who do not actually work.
Overpriced procurements: Purchasing products at prices significantly higher than market value.

Georgian Legislation and Legal Framework

The main article is Article 182 of the Criminal Code (Misappropriation or Embezzlement). If the crime is committed using an official position or in a large amount, the penalty provides for 7 to 11 years of imprisonment. A particularly large amount (more than 100,000 GEL) further aggravates the punishment. The Law on State Procurement and the Budget Code are important. The lawyer's task is to prove that the accused did not have the intent to misappropriate and that there might have been only a managerial error.

Service Delivery Process

The process begins with studying the audit report. The lawyer and financial expert check each disputed transfer. If funds are indeed missing from the budget, the defense strategy may be aimed at compensating for the damage and reaching a plea agreement. If the charge is baseless, the lawyer fights for acquittal.

Why choose a specialist on Legal.ge?

Public funds embezzlement cases require synergy between jurisprudence and accounting. Lawyers represented on Legal.ge often work in tandem with auditors, ensuring qualified defense. An error in financial documentation can be equal to prison, so trust the experts.