Police call it a civil dispute, not fraud: what to do under Georgian law

What to do

1. Classification by intent at the moment: fraud — taking property by deception with intent to appropriate it (the deception already exists when the money is received) (Criminal Code of Georgia, Art. 180). Signs of deception: someone else’s name, a non-existent object, many “clients”, disappearance right after payment. Money entrusted for a purpose and spent on oneself: misappropriation or embezzlement — the money was lawfully entrusted and then appropriated or spent (Criminal Code, Art. 182). Partial performance, or a dispute over quality or deadlines — usually a civil dispute.
2. Report — in writing, with the facts of the deception: on receiving information about a crime, the investigator or prosecutor must open an investigation (Criminal Procedure Code of Georgia, Art. 100); a written certificate that the report was accepted (Criminal Procedure Code, Art. 101); if you are not recognised as a victim within 48 hours — to the superior prosecutor (Criminal Procedure Code, Art. 56).
3. Closed as a “civil dispute”: a “civil dispute” is a termination on the ground that there is no act provided for by criminal law (Criminal Procedure Code, Art. 105); the prosecutor sends a copy of the termination decision to the victim within 1 week (Criminal Procedure Code, Art. 106); one complaint to the superior prosecutor is possible; in fraud cases its decision is, as a rule, final (Criminal Procedure Code, Art. 106).
4. In parallel — the civil route, which more often returns the money: a pre-trial demand, withdrawal from the contract after the additional period set has expired (Civil Code of Georgia, Art. 405); what was received (an advance payment) is returned (Civil Code, Art. 352); losses from breach of obligation (Civil Code, Art. 394); securing the claim — attachment of the defendant’s property or accounts (Civil Procedure Code of Georgia, Art. 191).
5. Time limits: the limitation period for contractual claims is 3 years (Civil Code, Art. 129); the period runs from when you learned or should have learned of the breach (Civil Code, Art. 130); limitation is interrupted by filing a lawsuit (or another application for the claim to a state body or court) (Civil Code, Art. 138). Do not wait for the outcome of the criminal case — filing a civil claim is more reliable.
6. Where to apply: police or prosecutor’s office; superior prosecutor; district (city) court for the civil claim.
7. Evidence: contract or receipt, transfers, correspondence; evidence of deception (someone else’s name, other victims); demand letter.
8. Pitfalls: writing only “he did not return the money” — without facts of deception it is a civil dispute; waiting for a criminal case and missing the civil limitation period; a complaint filed to pressure someone over a debt or with exaggeration — a false report; looking for a “refusal to open a case” — in Georgia a case is terminated by a decision of the prosecutor.

Be sure to check

• the line: deception and intent not to perform at the moment the money is received (fraud), or misappropriation of entrusted property — not merely a failure to perform a contract
• duty to start an investigation, certificate of the report, victim status
• termination as a “civil dispute”: copy within 1 week, a single complaint to the superior prosecutor
• parallel civil route: demand, withdrawal from the contract, return of the advance and losses, attachment of property; 3-year limitation period