VIDEO: Robert Kocharyan Arrested; His Son Also Involved in the Case

Fact-finding data have been obtained within the framework of a criminal investigation conducted by the Anti-Corruption Committee of Armenia regarding an individual who has held the office of President of Armenia. It is alleged that this individual, in prior agreement with close associates, used his official position to appropriate state property under various fabricated pretenses and acquired a number of valuable assets of public and economic significance at prices substantially below market value.

This information has been reported by the Anti-Corruption Committee.

According to data collected during the investigation, various properties were registered in the names of associated companies to conceal their actual ownership and illicit origin. Subsequently, these properties were managed through construction, sale, transfer to third parties, and even by donating shares of the owning companies.

For instance, an 8.3-hectare plot of land adjacent to Acharian and Tsarav Aghbyur Streets was acquired for 44,657,000 AMD, where the “Play City” entertainment center was constructed in 2002. Two years later, on November 15, 2004, 50% of the property was donated to and registered in the name of the former president’s son.

A 2-hectare plot located in the left side of the “Cascade” complex was acquired for 39,630,000 AMD. It was subsequently exchanged for another state-owned plot of the same area in a more advantageous location in Yerevan, which was later sold for 1,741,931,000 AMD.

The building at 8 Paronyan Street, registered under the “Ergasarq” LLC, was also acquired for 40 million AMD, where a multi-apartment building was constructed later, valued at 331,800,000 AMD in the market. The 600 m² public areas and two parking lots were formally recorded in the name of the former president’s son through fictitious transactions.

The “Kaputak Sevan” resort complex located in Gegharkunik Province was purchased for 83,669,000 AMD, with 50% of the ownership in the “Art Build” company being formally registered in the name of the former president’s son on January 15, 2010.

The 29,000 m² land parcel at 7/1 Tsitsernakaberd Highway, belonging to the State Non-Commercial Organization “Olympic Youth Sports School,” was acquired for 12,267,000 AMD. In 2008, the “Orange Fitness” premium club was built on the same site, and 50% of the ownership of the property was formally registered in the name of the company founded by the former president’s son in 2009.

The investigation also uncovered evidence that properties with historical and cultural significance were illegally alienated from state ownership and transferred to the “Piazza Grande” company in exchange for 2,633,934,000 AMD worth of real estate, with the intent to obscure their true ownership and origin by formalizing sales contracts in the names of the former president's family members and affiliated entities.

In another episode, a parcel of land belonging to the Ministry of Defense with an estimated market value of 1,393,870,000 AMD was sold to a company associated with a close associate of the former president at four times lower than its market value. The investigation indicates that in exchange for selling these plots significantly below their value and facilitating the unhindered establishment of the Japanese “Toyota” company’s representative office in Armenia, a 30% stake in the “Toyota Yerevan” company was transferred to the individual holding the presidential office on May 9, 2006, which was subsequently concealed through formal sales contracts registered in the name of the former president's son.

Within the framework of this criminal case, six individuals have been arrested, including the former president, his son, and other individuals involved in the criminal schemes. The investigation is also examining substantial financial transactions made in the name of the former president's son from 2001 to 2019, involving around 144 billion AMD, $309 million, €77 million, and 18 million Russian rubles, as well as investigations into the acquisition circumstances of more than thirty real estate properties belonging to related persons and their family members both in Armenia and abroad.

Actions have been taken to impose restrictions aimed at preventing the possible transfer or alienation of these properties.