Prosecutor’s Office launches criminal proceedings against owner of Georgia’s development company Crystal Group

The Prosecutor’s Office of Georgia has launched criminal proceedings against the owner of development company Crystal Group, Vladimir Stepanyan, on charges of illegal entrepreneurial activity and money laundering.

The body announced on Sunday that the investigation had found the company Bakuriani Business Group - part of Crystal Group - was engaged in the construction and subsequent sale of hotel-type residential complexes in Bakuriani.

Stepanyan, who effectively managed the company’s daily operations, allegedly violated both Bakuriani’s general development plan and the conditions of construction permits issued by relevant authorities. The illegally constructed apartments were later sold to third parties.

Through these activities, Bakuriani Business Group is believed to have generated illicit income amounting to ₾1,894,925 ($700,644). To legalise these funds, Stepanyan allegedly deposited part of the money into the company’s bank accounts, transferred another portion to his personal ownership and used the funds to purchase real estate and movable property registered in his and affiliated individuals’ names.

The crime is punishable by up to 12 years in prison.

The Prosecution Service said it would apply to the court within the legally prescribed timeframe to request pre-trial detention as a preventive measure.