BAMBERG, GERMANY – Mikheil Biniashvili, a Georgian and Israeli citizen, has been convicted and sentenced to seven-and-a-half years in prison by the Bamberg Regional Court in Germany for his central role in a sprawling investment fraud scheme that defrauded victims, primarily in German-speaking countries, out of approximately €8 million. The verdict, delivered on Tuesday, March 10, 2026, marks a significant victory for international law enforcement against sophisticated cybercrime.
Biniashvili’s conviction stems from his operation of a large-scale call-center network that lured unsuspecting investors with promises of lucrative returns on fraudulent online trading platforms. The court also attributed an additional €42 million in global fraud to his creation and sale of the “PumaTS” software, a proprietary platform that enabled other criminal groups to replicate and expand the scam model.
The Charges Against Mikheil Biniashvili
Mikheil Biniashvili was found guilty of two counts of commercial and organized fraud. Prosecutors presented evidence detailing how he orchestrated a sophisticated network of call centers, primarily based in Albania, employing up to 600 agents. These agents, expertly trained in persuasion, posed as legitimate investment advisors, convincing victims to deposit significant sums into what they believed were genuine trading accounts. In reality, the funds were never invested but were systematically siphoned off by the operators.
The fraudulent operation ran from January 2017 to May 2019. Beyond the direct management of these call centers, Biniashvili’s criminal enterprise extended to the development and distribution of the “PumaTS” software. This customer-management and trading platform was a crucial enabler for widespread fraud, reportedly utilized by over 400 fraudulent financial websites globally. After stepping away from day-to-day call center operations in 2019, Biniashvili continued to profit by selling this software to other illicit groups, effectively franchising his fraud model.
The sheer scale of the financial damage is staggering. The call-center operation directly managed by Mikheil Biniashvili resulted in approximately €8 million in losses, predominantly affecting individuals in Germany, Austria, and Switzerland. However, the broader impact of the “PumaTS” software significantly amplifies these figures, with an additional €42 million in damages attributed to its use by other criminal enterprises. Some reports suggest the overarching criminal scheme, which included Biniashvili’s network, impacted over 1,000 victims in German-speaking countries, with total financial damage exceeding €230 million. In Germany alone, 552 victims linked to 94 platforms faced preliminary damages of over €17.6 million. The court has ordered the confiscation of €2.4 million in illicitly acquired assets from Biniashvili.
Who Is Mikheil Biniashvili?
Known by the nickname “Mishka,” Mikheil Biniashvili is a citizen of both Georgia and Israel. While his precise age has not been publicly disclosed, testimony from January 2019 described him as being “about 50 years old.” He emerged as a key figure and mastermind behind the notorious “Milton Group” call-center fraud network. Biniashvili owned the “Spot MT” call center in Albania and was the architect behind the notorious “PumaTS” software, a tool that became synonymous with large-scale investment fraud across Europe.
The investigation into Biniashvili’s activities was a testament to international cooperation. German law enforcement, including the Bamberg General Prosecutor’s Office and the Bavarian Cybercrime Center, spearheaded the probe. Crucially, a joint investigative group was formed with judicial authorities from Spain, Germany, Sweden, Finland, Latvia, Ukraine, Georgia, and North Macedonia, with Eurojust and Europol providing critical support. The fraud was initially uncovered through a deluge of reports and complaints from victims. A crucial breakthrough came when an Albanian individual confessed, providing information that helped identify programmers linked to Biniashvili. Operations like “Frida-Refox” in November 2022 involved surprise raids on call centers in Albania, leading to the discovery of cryptocurrency wallets, bank cards, and the evaluation of a server that ultimately connected individuals to the “PumaTS/SMCompany” IT enterprise.
“This conviction sends a clear message that those who orchestrate sophisticated financial frauds, even across international borders, will be pursued relentlessly and brought to justice. The impact on victims is devastating, and this sentence reflects the severity of the crime.”
Mikheil Biniashvili was arrested in Armenia in August 2023 and subsequently extradited to Germany in May 2024. His trial commenced on January 15, 2026, at the Bamberg State Court, lasting 11 days under stringent security measures. As part of a plea agreement, Biniashvili confessed to his role in the scheme and issued an apology to the victims. While the court has ordered the formal confiscation of €2.4 million in illicitly acquired assets, the verdict is not yet final and can be appealed. He remains in pretrial detention in a high-security prison in Bavaria.
This case serves as a stark reminder of the persistent threat of investment fraud. Readers should remain vigilant against unsolicited investment opportunities, especially those promising abnormally high returns with minimal risk. Always verify the legitimacy of any trading platform or investment firm with relevant regulatory bodies before committing funds. Be wary of pressure tactics, overly friendly advisors, or any lack of transparency regarding where your money is being invested. Legitimate investment firms provide clear, verifiable reporting on account activity. For more information on protecting yourself from similar threats, visit our related fraud investigations.
