Billion-dollar assets and fictitious transactions: Investigation reveals scheme of the Kocharyan family - UPDATED

The Anti-Corruption Committee of Armenia has disclosed details of the criminal proceedings involving Robert Kocharyan.

As part of the criminal proceedings investigated by the Anti-Corruption Committee, factual evidence was obtained showing that the individual who held the office of the President of the Republic of Armenia, acting by prior agreement with close associates and abusing official position, removed a number of valuable real estate properties of public and economic significance from state ownership under various fictitious pretenses and acquired them at prices substantially below market value.

NEWS.am was informed of this by the Anti-Corruption Committee.

"According to data obtained during the preliminary investigation, to conceal the real ownership and criminal origin of the property, it was registered in the names of interconnected companies. Subsequently, the acquired property was disposed of through development and sale, alienation to third parties, as well as the transfer of shares in the owner companies, including by way of donation.

For instance, a land plot of 8.3 hectares adjacent to Acharyan and Tsarav Aghbyur streets was acquired for 44,657,000 AMD, where the 'Play City' entertainment center was built in 2002. Two years later—on November 15, 2004—a 50% stake in 'Fast Kart', the company owning the property, was donated and registered in the name of the former president's son. A land plot of 2 hectares located on the left side of the 'Cascade' complex was acquired for 39,630,000 AMD. It was subsequently exchanged for another land plot of the same area owned by the state and located in a more favorable area of Yerevan, which was later alienated for 1,741,931,000 AMD. The building at 8 Paronyan Street, which was on the balance sheet of 'Yeraspasarkum' CJSC, was also acquired for 40 million AMD; subsequently, public spaces with a total area of 600 sq. m and two parking spaces in the newly built apartment building, with a market value of 331,800,000 AMD, were registered in the name of the former president's son through fictitious purchase and sale transactions.

The 'Kaputak Sevan' resort complex located in the Gegharkunik Province was acquired for 83,669,000 AMD, and on January 15, 2010, a 50% stake in 'Art Build', the company owning the complex, was registered in the name of the former president's son through a fictitious purchase and sale transaction.

A land plot of 29,000 sq. m at 7/1 Tsitsernakaberd Highway, belonging to the 'Children and Youth Sports School of Olympic Reserve for Tennis' SNCO, along with a structure located on it with an area of 1,700 sq. m, were acquired for 12,267,000 AMD. In 2008, the premium club 'Orange Fitness' was built on this territory, and in 2009, a 50% stake in the owner company was registered via a fictitious transaction in the name of a company founded by the former president's son.

The preliminary investigation also obtained data showing that in exchange for organizing the privatization process—in violation of a number of legal norms—and the alienation to 'Piazza Grande' of the Officers' House building at 20 V. Sargsyan Street (a historical and cultural monument), as well as an unfinished building at 16 Nalbandyan Street, the individual holding the office of President of the RA received 56 real estate properties as a bribe, with a total value of 2,633,934,000 AMD. To conceal their real ownership and origin, these properties were registered under fictitious sales contracts in the names of the former president's family members and affiliated organizations.

In another episode: the total market value of land plots belonging to the Ministry of Defense of the RA located at 22 and 22/4 Admiral Isakov Avenue, including those intended for the construction of a scientific and production station, amounted to 1,393,870,000 AMD, whereas they were sold to a company belonging to an associate of the former president at a price four times lower. According to the investigation, in exchange for selling the land plots at a disproportionately low price and ensuring the unhindered establishment of a representative office of the Japanese company 'Toyota' in Armenia, a 30% stake in 'Toyota Yerevan' was transferred as a bribe on May 9, 2006, to the individual holding the office of President of the RA. To conceal its criminal origin, it was registered under fictitious sales contracts in the name of the former president's son.

As part of the criminal proceedings, 6 people were detained, including the former president, his son, and other individuals involved in the criminal schemes.

The preliminary investigation is also examining the circumstances surrounding money transfers made to the former president's son between 2001 and 2019 in the amount of approximately 144 billion AMD, 309 million US dollars, 77 million euros, and 18 million Russian rubles, as well as the acquisition of more than three dozen real estate properties in Armenia and abroad belonging to individuals connected to the proceedings and their family members. To prevent the possible transfer or alienation of the property, appropriate actions have been taken to seize it," the statement reads.

10:50

Former President of Armenia and leader of the "Armenia" opposition faction Robert Kocharyan and his eldest son Sedrak Kocharyan have been detained.

This was announced by Marina Oghanjanyan, press secretary of the Anti-Corruption Committee.

"Yes, they have been detained," she stated.

Earlier, Bagrat Mikoyan, head of the office of former Armenian President Robert Kocharyan, confirmed his detention and transfer to the Anti-Corruption Committee. Additionally, National Security Service (NSS) officers have begun conducting searches in the apartment of Levon Kocharyan, a member of the "Armenia" faction and son of the former president.

10:15

Robert Kocharyan’s eldest son, Sedrak Kocharyan, has also been brought to Armenia’s Anti-Corruption Committee, according to Armenian media reports.

Tax authorities have sealed the Yerevan office of Toyota. Employees of the Anti-Corruption Committee are currently at Orange Fitness.

Sedrak Kocharyan, the eldest son of Robert Kocharyan, is a shareholder in Toyota.

09:25

Former Armenian President Robert Kocharyan has been taken to the National Security Service of the Republic of Armenia; other details are not yet known, opposition lawmaker Anna Grigoryan reported.

According to media reports, after the NSS, Kocharyan was transferred to the Anti-Corruption Committee.

Recall that in the morning, NSS representatives raided the home of the former president's son, Levon Kocharyan.

The Anti-Corruption Committee confirmed the information about the search at Levon Kocharyan's home.

“Within the framework of criminal proceedings conducted by the Anti-Corruption Committee of the Republic of Armenia on cases of corruption crimes, searches and other procedural actions are being carried out at several dozen addresses,” said Anti-Corruption Committee spokeswoman Marina Ohanjanyan.

The Committee noted that additional information will be provided if necessary.