Rakeen Georgia ex-CEO faces trial in Georgia

A month after the former head of Rakeen Georgia, a property developer in the emirate, was convicted in a court here, he has been charged with fraud in Georgia, according to reports.
The Ras Al Khaimah (RAK) Criminal Court last May sentenced Gela Mikadze, along with Khater Massaad, the former CEO of RAK Investment Authority (Rakia) in absentia to 15 years in prison and ordered them to repay $17.2 million they embezzled from Rakia.
Massaad appointed a Mikadze as CEO of Rakeen Georgia while the former was the CEO of Rakia.
Now, the ex-chief of Rakeen Georgia has been found guilty of serious scam in the Tbilisi City Court, Georgia. Last Friday, Tbilisi City Court Judge Maia Svianadze ordered Georgia Golf & Resort LLC, a company connected to Mikadze, to return land that he stole from Rakeen Georgia. The case revolves around 951 hectares of land in Mukhrovani that was bought by Mikadze on behalf of Rakeen Georgia.
The Georgian court has stated that Massaad, alongside Mikadze and another defendant George Janashia had, "intentionally caused damages to the money and interests of the authority for which they work".
The land was bought in 2007 from a close associate of Mikadze for approximately $16.45 million (Dh60.42million), more than 10 times the actual value of the land.
Mikadze sold the land in July 2012 for just $1.2million to a shell company of which he was the ultimate beneficial owner.
Mikadze later sold two-thirds of the shares in his company to his accomplices Khater Massaad and Karam Al Sadeq for just $2.
This is the second court decision against Mikadze and others in two months.
In the Raystar case, the pair were both sentenced to 15 years' imprisonment for their roles in a multi-million-dollar fraud connected to the sale of the Poti Sea Port.
Khater Massaad fled the UAE in 2012 when allegations concerning fraud and embezzlement first surfaced.
Following extensive cross-border investigations it became clear that  Massaad and Mikadze have amassed over US$1.5billion through corruption across the globe.
Last month, the Ras Al Khaimah criminal court presided over by Judge Sameh Hamed Shaker, sentenced the two suspects, in absentia, to 15 years in prison and ordered them to repay $17.2 million they embezzled from Rakia.
The court, as per a statement Khaleej Times got from the RAK government media office, Massad, Mikadze and a another defendant George Janashia, stated that "they had intentionally caused damages to the money and interests of the authority for which they work, Ras Al Khaimah Investment Authority."
The case concerned putting in place and then cancelling a joint venture agreement between JSC Poti Sea Port (at the time 100 per cent owned by Rakia) and a newly incorporated limited liability partnership named Raystar Trade LLP.
The RAK court noted in its judgment that under the Raystar-PSP JV agreement, Raystar was to contribute nothing more than its expertise in managing ports even though the firm had "no experience in this field".
The beneficiaries of Raystar were, unknown to all in Rakia except Massaad, Mikadze and Janashia.
The agreement was made by these three in the full knowledge that Raystar could not contribute anything as they had no experience and in the full knowledge that the contract would be cancelled on Rakia making a payment to Raystar. That payment totalled $17.2 million paid to the personal Swiss bank accounts of Mikadze and Janashia.
In October 2015, Massaad was convicted in absentia in relation to fraud concerning property leases. He is currently awaiting extradition from Saudi Arabia to the UAE. He was detained at Jeddah airport in September last year following an Interpol arrest warrant.

source: Khaleejtimes