Author
Front News Georgia
The head of Georgia’s development company Crystal Group has been arrested on charges of large-scale money laundering, the Investigation Service of the Ministry of Finance of the country announced on Saturday.
The body added the arrest was carried out in coordination with the State Security Service as part of ongoing efforts to combat illegal land acquisitions and unauthorised construction in resort areas - practices that, the body said, harm public and state interests.
The investigation revealed that the founder of Bakuriani Business Group and Hotels Management Group, operating under the Crystal Group brand, illegally built five hotel-apartment complexes in the Didveli area of Bakuriani without proper permits. The suspect also constructed a private ski lift, ski track and toboggan run for the exclusive use of Crystal Group customers.
As a result of the unauthorised construction and sale of the illegally built hotel-apartments, the company allegedly generated tens of millions of Georgian lari in unlawful income. So far, investigators have identified ₾1,894,925 ($700,644) in laundered proceeds.
The investigation is ongoing to uncover the full scope of Crystal Group’s alleged criminal activities and to identify possible accomplices, including public officials who may have facilitated the offences.
The crime is punishable by nine to twelve years in prison.
