Tbilisi City Court sentenced Sphero Holding founder Givi Tsuleiskiri to 12 years in prison and company employee Sofiko Petriashvili to eight years on August 6 after convicting them of large-scale fraud, illegal entrepreneurial activity and money laundering that took GEL 34,855,130 from 579 citizens. Compensation is to come from assets already seized from the defendants.
The two companies, Sphero Holding and Sphero Invest, each received a 10-year ban on operations and a GEL 100,000 fine. The case closes the criminal chapter on a scheme that ran from early 2022 into late 2025, yet leaves the victims’ housing and full repayment as open questions.
Court Sets Prison Terms and Company Bans
Georgia’s Prosecutor’s Office said the Tbilisi City Court fully accepted the evidence and found Tsuleiskiri, sole owner of Sphero Holding, and Petriashvili guilty. The court ruled the pair obtained the money through an organized group that used official positions and produced particularly large gains.
| Defendant / Entity | Role | Sentence or Penalty |
|---|---|---|
| Givi Tsuleiskiri | Founder, sole owner Sphero Holding | 12 years imprisonment |
| Sofiko Petriashvili | Company employee / lawyer | 8 years imprisonment |
| Sphero Holding | Legal entity | 10-year activity ban + GEL 100,000 fine |
| Sphero Invest | Legal entity | 10-year activity ban + GEL 100,000 fine |
Tsuleiskiri was convicted under Article 180 of the Criminal Code (fraud in particularly large amounts by an organized group), Article 194 (money laundering by an organized group using official position for especially large income) and Article 192 (illegal entrepreneurial activity by a group). Petriashvili was convicted on related fraud and illegal activity counts. The official release records the exact 12 years and 8 years in prison.
- Total loss ruled: GEL 34,855,130
- Victims ruled: 579 citizens
- Approximate USD value: roughly $13.3 million at recent mid-market rates near 0.38
- Compensation source: previously seized assets of the convicted
The court ordered the defendants to pay victims from those seized holdings.
How the Dual Contracts Worked
Sphero Invest, fully owned by Sphero Holding, signed two kinds of agreements with private citizens between February 2022 and October 2025. One type covered the temporary transfer of immovable property for residential use. Citizens transferred money to the company account; the firm then rented apartments from third parties for them. At the end of the term the company was supposed to return the full principal. It stopped paying the landlords’ rent and never returned the deposits. Hundreds of people lost their housing.
The second type were capital-investment contracts. Citizens deposited funds in exchange for promised monthly returns plus full repayment of principal at term. Those payments also stopped and the principal stayed with the company.
- Citizens paid money into Sphero Invest accounts under housing-transfer contracts and received rented flats.
- Company halted rent payments to landlords, leaving residents without accommodation.
- Separate investment contracts promised monthly yields and principal return that never arrived.
- Funds were misappropriated rather than used for the stated purposes.
- Petriashvili handled negotiations and contract signings with the citizens as part of the group.
Prosecutors described the operation as an organized scheme that used the companies’ positions to collect the money. The housing contracts turned financial loss into actual homelessness for many of the same people.
Victim Count and Losses Kept Rising
When Tsuleiskiri was arrested in November 2025 the Prosecutor’s Office reported at least 244 victims and about GEL 12 million in damage. The investigation widened quickly.
- November 2025: Tsuleiskiri arrested; Murusidze charged; 244 victims, ~GEL 12 million alleged. Scheme used temporary residential property contracts and investment deals.
- February 2026: Petriashvili arrested; prosecutors then cited roughly 490 citizens and more than GEL 29 million.
- August 6, 2026: Final court figures fixed at 579 citizens and GEL 34,855,130.
The growth shows how many more people came forward once the arrests became public. Sphero Holding and Sphero Invest operated in real estate and investment. Early promotional material had presented the holding as a multifunctional corporation active in development and hospitality partnerships.
Companies Lose the Right to Operate
Both legal entities were convicted of illegal entrepreneurial activity and money laundering. Each is barred from any activity for 10 years and must pay a GEL 100,000 fine. The bans remove the corporate shells that collected the deposits.
Tsuleiskiri owned 100 percent of Sphero Holding, which in turn owned Sphero Invest. Giorgi Murusidze was formally director of Sphero Invest; prosecutors said he and Tsuleiskiri ran the business jointly in practice. Petriashvili worked inside the structure and managed the citizen-facing side of the deals.
Seized Assets Meet a Larger Claim
The court ruled that victims will be compensated from assets previously seized from the convicted parties. That mechanism is standard, yet the scale creates an immediate gap. Reports circulating after the verdict said the value of arrested property does not cover the full GEL 34.8 million. Victims have spoken of roughly 570 families left without housing for more than a year and have appealed publicly for government intervention to close the shortfall.
At recent official lari exchange rates the loss equals roughly $13 million. Even partial recovery will matter to people who lost both cash and the apartments the company had rented for them. Full restitution remains uncertain until the seized property is valued and distributed.
What we know
- Final court loss figure is GEL 34,855,130 from 579 citizens.
- Compensation ordered from previously seized assets.
- Companies banned for 10 years and fined GEL 100,000 each.
What remains open
- Exact recoverable value of the seized assets versus the total claim.
- Timeline for distribution to the 579 victims.
- Status of any additional civil claims by the families.
The housing element turns a classic investment fraud into a simultaneous residential crisis for the same group of people.
One Director Remains Outside Georgia
Giorgi Murusidze, the formal director of Sphero Invest, was charged at the same time as Tsuleiskiri in November 2025. He was later detained in Italy as a wanted person. Extradition proceedings were under way as of early 2026 and had not concluded by the time of the August verdict against the other two defendants and the companies.
Prosecutors continue to treat the case as an organized group offense. Any future proceedings against Murusidze would sit on the same factual base of the dual contracts and the misappropriated funds.
The prison terms and corporate bans deliver a clear criminal reckoning. For the 579 citizens the practical test is whether the seized assets can restore even a substantial share of the money and the housing security they lost.
Frequently Asked Questions
What exactly did the Sphero scheme promise investors?
Citizens signed either temporary residential property-transfer contracts, under which they paid money and received rented flats with a promise of full principal return at term, or capital-investment contracts that offered monthly returns plus principal repayment; both streams stopped and the funds were kept by the companies.
How did the victim and damage figures grow over time?
Arrest-day figures in November 2025 stood at 244 victims and about GEL 12 million; by Petriashvili’s February 2026 arrest the totals had reached roughly 490 people and more than GEL 29 million; the final August 2026 judgment fixed 579 citizens and GEL 34,855,130.
What penalties did the two companies receive?
Sphero Holding and Sphero Invest were each banned from all activity for 10 years and fined GEL 100,000 after being found guilty of illegal entrepreneurial activity and money laundering.
Which Criminal Code articles supported the prison sentences?
The court applied Article 180 (fraud in large or particularly large amounts by an organized group), Article 192 (illegal entrepreneurial activity) and Article 194 (money laundering with organized-group and official-position aggravators) of the Criminal Code of Georgia.
Where will victim compensation come from?
The judgment requires payment from assets that prosecutors had already seized from the convicted defendants before the verdict; no separate state compensation fund was ordered in the ruling.
