Khater Massaad appointed Gela Mikadze as CEO of Rakeen Georgia while he was CEO of RAKIA (Ras Al Khaimah Investment Authority).
Mikadze has now been found guilty of serious fraud in the Tbilisi City Court, Georgia. On 16 June, 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 land was bought in 2007 from a close associate of Mikadze for approximately GEL 27,200,000 (US$16,451,000), over 10 times the actual value of the land. Mikadze approved this deal and then through a web of deceit and fraud sold the land in July 2012 for just GEL 2,000,000 (approx. US$ 1,200,000) – a fraction of what it was then worth (GEL 32,500,000/$US 21,000,000) and what it had cost Rakeen Georgia. Mikadze sold the Mukhrovani Lands 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 co-conspirators Khater Massaad and Karam Al Sadeq for just US$2.
This is the second court decision against Mikadze and his interests in two months following his criminal conviction for fraud alongside Khater Massaad in the UAE. In that 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. Judge Sameh Hamed Shaker, President of the Court, stated that Khater Massaad, alongside Mikadze and George Janashia had, “intentionally caused damages to the money and interests of the authority for which they work”.
Khater Massaad fled the UAE in 2012 when allegations concerning fraud and embezzlement first surfaced. Following extensive cross-border investigations it rapidly became clear that Khater Massaad and Gela Mikadze have serious questions to answer over US$1.5billion in misappropriated funds and the corrupt dealings he had been involved in across the globe.
Khater Massad is currently in Saudi Arabia, awaiting extradition to the UAE.