Securities Fraud Defense in Georgia | Legal.ge

SecuritiesFraudDefense

Is every investment loss considered fraud?

No, investing inherently carries risk. Fraud occurs only when there was intentional deception, misrepresentation, or misappropriation of funds.

What if I didn't know the scheme was a fraud?

Lack of intent is a strong defense. If you were an employee or partner who was also deceived or unaware of the fraudulent nature, you should not be held criminally liable.

Can I settle with investors to drop charges?

While settling with investors helps significantly and can lead to a plea bargain, the criminal charges are brought by the state, so the prosecutor must also agree to any deal.

Securities fraud represents a complex economic crime aimed at deceiving investors and obtaining illegal financial gain through market manipulation. In Georgia, where the investment environment is developing, such crimes are attracting increasing attention from law enforcement agencies. Charges can be brought against investment fund managers, brokers, company directors, or financial advisors accused of providing false information to investors, artificially inflating asset values, or selling non-existent securities. This act often qualifies as fraud (Article 180 of the Criminal Code), which carries severe penalties, including lengthy imprisonment. Defense in such cases requires not only deep knowledge of criminal law but also an understanding of the specifics of corporate finance and banking regulations. The involvement of a qualified lawyer is crucial to determine whether there was intentional crime or if the case involves a failed business risk.

What does Securities Fraud Defense service cover?

Lawyers on our platform offer full-scale legal defense against financial fraud charges:

Audit of investment documentation: Detailed analysis of prospectuses, investment agreements, and financial statements to determine compliance with legislation.
Provision of financial expertise: Engaging independent auditors and financial experts to confirm the targeted spending of funds and refute allegations of misappropriation.
Representation with investigative bodies: Protecting client rights during interrogations at the Prosecutor's Office and Financial Police.
Defense against Ponzi scheme charges: Presenting evidence that the company had real economic activity and did not constitute a financial pyramid.
Negotiation with victims: Communicating with investors and proposing a damage compensation plan in exchange for termination of prosecution or mitigation of sentence.

Common Situations and Scenarios

Charges of securities fraud are often related to the following circumstances:

Financial pyramids (Ponzi schemes): When old investors are paid with funds attracted from new investors without generating real profit.
Falsification of company value: Presenting artificially inflated asset valuations to potential investors for the purpose of selling shares or bonds.
Trading in non-existent products: Attracting investments for financial instruments (e.g., cryptocurrency, stocks) that do not actually exist or are not registered.
Misappropriation of funds: Using funds attracted from investors for personal purposes or to finance other, undeclared projects.
Promise of guaranteed profit: Misleading investors by promising "guaranteed" returns on high-risk operations.

Georgian Legislation and Legal Framework

This field is regulated by the Criminal Code of Georgia, primarily Article 180 (Fraud), which provides liability for taking possession of another's item or acquiring property rights by deceit for the purpose of unlawful appropriation. The Law of Georgia on the Securities Market and the Law on Entrepreneurs are also important, as they define the obligations of issuers and brokers. The severity of the charge depends on the amount of damage caused. Fraud committed in a large amount (more than 10,000 GEL) or particularly large amount (more than 100,000 GEL) belongs to the category of serious crimes. The prosecution often uses complex economic expertise to substantiate guilt, which the defense must counter with qualified alternative expertise.

Service Delivery Process

Working with a lawyer begins with reviewing case materials and an initial audit of financial documentation. The lawyer assesses whether there are elements of fraud or if the case is a civil dispute. In the next stage, a strategy is developed: if the charge is baseless, the lawyer fights for the dismissal of the case; if there are violations, the focus is on compensation for damages and a plea agreement. Throughout the process, the lawyer ensures the protection of the client from illegal detention and seizure of property.

Why choose a specialist on Legal.ge?

Lawyers represented on Legal.ge possess unique experience in the field of economic crimes. Securities fraud cases require specific knowledge that a general profile lawyer cannot provide. Through our platform, you can find specialists who have successful practice in such complex cases. Protect your freedom and reputation with verified professionals on Legal.ge.