Massaad’s Former Aide Ordered to Pay Rakeen Uptown $1.7 Mln

Last week, Judge Chuniashvili gave her final judgment in the civil case of Rakeen Uptown Development LLC (a subsidiary of Rakeen Development PJSC) v Gela Mikadze (former CEO of Rakeen Uptown Development and Ras Al Khaimah Investment Authority Georgia) and Tecberg Projects LLP (an entity associated with Mikadze).

In the judgment, Mikadze and Tecberg were ordered to jointly pay Rakeen Uptown Development USD 1,736,000 plus the GEL 5,000 court fee in respect of claims of breach of duties as director, embezzlement and fraud. Mikadze was appointed by and closely associated with Khater Massaad, who is himself currently under investigation in numerous jurisdictions for allegedly embezzling and mismanaging funds valued at approximately USD 1.5 billion.

Gela Mikadze, through a plea bargain agreement in December 2013, admitted to wide-scale fraud involving the misappropriation of shares in Rakeen Development, Ras Al Khaimah Investment Authority and Rakia Georgia Free Industrial Zone. The multi-million valued shares were transferred to Mikadze for a symbolic price with the approval of Khater Massaad, acting without any authority.

This is the first in a series of Georgian cases brought by RAK entities against Mr Mikadze, Dr Massaad and their associates. A majority-owned subsidiary of Rakeen Development PJSC, Rakeen Construction has brought a case against Dr Massaad comprising of similar claims. Dr Massaad and Mr Mikadze are also co-defendants in another similar civil case brought by Rakeen Construction