Russia’s FSB Detains Dozen in Milton Group Fraud Scheme Linked to Ex-Georgian Minister
Russia’s Federal Security Service (FSB) announced the detention of a dozen members from the Milton Group, an international criminal network accused of defrauding over 100,000 individuals globally. The group allegedly operated fraudulent call centers that raked in up to $1 million a day through fake investment schemes. The victims were reportedly from countries including the European Union, the U.K., Canada, Brazil, India, and Japan.
Among those arrested were 11 individuals, including an Israeli-Ukrainian citizen who was described as a senior figure in the network. The FSB also issued an arrest warrant for an Israeli-Georgian national believed to have been involved in the scam. Both suspects are said to have received instructions from Ukraine’s SBU security service in 2022 to distribute scam warnings about terrorist acts in Russia.
A video released by the FSB showed a raid on a call center, where multiple individuals were apprehended while masked law enforcement officers inspected computers. The footage indicated that the call centers operated in several languages, including English, French, Arabic, Portuguese, and Japanese.
The FSB claims the criminal operation was linked to David Kezerashvili, the former Georgian Defense Minister, who is believed to be the founder of Milton Group. Kezerashvili, who currently resides in London, has been charged with large-scale fraud by Russian authorities. He was placed on an international wanted list in November. Additionally, Kezerashvili faces charges related to alleged war crimes during the 2008 conflict in Georgia’s Tskhinvali region. He has denied the allegations, calling them part of a smear campaign.
Kezerashvili has also distanced himself from the Milton Group in the past. During a 2020 investigation by the Organized Crime and Corruption Reporting Project (OCCRP), he denied any involvement with the organization. However, he acknowledged having business ties with David Todua, the Israeli-Georgian citizen wanted by the FSB.
The OCCRP’s investigation revealed that Milton Group’s call center operated out of Kyiv, Ukraine. The scam involved enticing victims through Facebook ads that promised high financial returns. After making small investments, victims found themselves unable to withdraw the funds. The group’s alleged leader, Jacob Keselman, insisted that no fraud occurred, claiming the losses were due to the victims’ lack of understanding of investment and forex markets.
The FSB’s investigation also led to the raid of additional call centers in Moscow, where other alleged criminals were arrested for stealing tens of millions of dollars through similar fake investment schemes. These centers, however, were not directly connected to Milton Group.
The latest round of arrests also uncovered connections to the criminal group Khimprom, which is believed to be involved in the production and distribution of synthetic drugs across Russia and Ukraine. Khimprom’s leader, Yegor Burkin, is currently a fugitive wanted by Russian authorities.
In September, Georgian authorities arrested four individuals tied to Kezerashvili’s call center network, charging them with fraud and money laundering. Kezerashvili, however, continued to deny the allegations, calling them part of a wider campaign against him.
The case continues to unfold, with ongoing investigations into the Milton Group’s operations and its global network of fraudulent activities.
