Fraud and Theft by Loan Provisioning Service Organizations

The Investigative Committee of Armenia has reported that following necessary investigative and procedural actions in the General Department of Investigating Crimes of General Nature and Electoral Crimes, several circumstances regarding instances of large-scale fraud and theft by organizations providing loan services have been clarified, leading to charges against six individuals.

According to the information provided by the Committee's Information and Public Relations Department, the preliminary investigation revealed that multiple organizations were created under the pretext of providing loan services to the public. These organizations operated in Yerevan’s Mashtots Avenue and advertised their services online through links such as ‘Varkov.am’ and ‘Varks.am.’ However, it was determined that these organizations were not actual lending institutions. When individuals approached them, company representatives took them to a store for equipment or building materials and acted as intermediaries in acquiring goods on credit. Subsequently, they claimed that their company was willing to purchase the items from the store, paying 65% of their value. Upon receiving the goods, the citizens were defrauded, receiving either no payment or only partial payment for the amounts owed.

Based on a combination of sufficient evidence, charges were filed against six individuals; specifically, one company director was charged under Article 325, Part 2 of the Criminal Code of Armenia (24 episodes), and under Article 178, Part 2, Points 1.1 and 2 (6 episodes), as well as under Article 178, Part 2, Point 1.1 (4 episodes). One director of a company providing false documentation for loans was charged under Article 189, Part 1, and Article 325, Part 2 (15 episodes), while the remaining four were charged under Article 325, Part 2. The preventative measure selected for them is a signed commitment not to leave.

The investigative body urges the public to avoid engaging in such transactions, as individuals who agree to partake in these schemes become embroiled in criminal activities and are advised to seek loan services only from licensed organizations.