On 12 December, 2023, the prosecutor confirmed the case of A.Kh., the son of the former SRC Chairman Gagik Khachatryan, and his nephew, S.A., the Director General of “Multi Group Concern” and A.P., a driver of one of the banks and handed over the indictment and the proceedings materials to the Anti-Corruption Court.

According to the criminal proceedings examined in the Main Directorate of Investigation of the National Security Service, it was found that G.Kh., having held the positions of the Acting Chairman of the State Customs Committee, the Chairman of the same committee, the Chairman of the State Revenue Committee (hereinafter referred to as the Committee) and the Minister of Finance in the years 2008-2016, instructed the officials of the Committee, and then the officials of the Ministry of Finance to cooperate with the Limited Liability Company (LLC) founded by his sons A.Kh. and G.Kh, and  relative A.Kh., to eliminate the obstacles arising in the purchase procedure and to apply the most favorable purchase procedures:

Taking advantage of the favorable conditions illegally created by G.Kh., during the years 2008-2020, the LLC signed contracts with the Committee for the supply of goods and services worth 4 billion 426 million 435 thousand AMD.

In addition, G.Kh., with the participation of other persons dependent on him in his service, ensured that a contract for the purchase of 19 software modules with as significantly higher than the real value, of 4 billion 283 million 580 thousand drams was signed with the company of his sons and nephew, (when signing a contract with the mentioned company, no procurement tender was held, the negotiation procedure was chosen without prior publication of the procurement announcement, the invitation was sent only to the company of his sons and nephew).

Although the works provided for in the contract were actually performed by the contractor and subcontractor for 2 billion 777 million 410 AMD, in return for these works, 4 billion 283 million 580 thousand AMD were transferred to the company from the state funds, as a result of which 1 billion 506 million 169 thousand 583 AMB were embezzled.

The particularly large property obtained as a result of the above-mentioned actions, the income from its use were directed through bank transfers to the bank accounts of organizations affiliated with G.Kh.’s sons A.Kh., G.Kh. and nephew A.Kh., the accounts, which were combined with other funds and managed by them.

In the above-mentioned manner, during the years 2011-2018, an amount equivalent to 39 billion 723 million 323 thousand AMD was transferred to another LLC operating with their participation, of which an amount equivalent to 32 billion 332 million 943 thousand AMD was transferred as a loan. A part of the amount received, as well as deposited in cash and mixed with the financial resources of the LLC operating in the field of telecommunications – 8 million 589 thousand 900 USD at the request of G.Kh.’s sons and nephew, on the basis of the return of the loan, was cashed in the name of the director of the company, and then deposited to a company account registered in the British Virgin Islands.

In addition, G.Kh.’s sons, being aware of the consent of  S.A., the Director General of “Multi Group Concern” LLC, to pay a bribe of particularly large sums of 22 million 185 thousand US dollars and 206 thousand 500 euros to their father who held the position of RA SRC Chairman, met with S.A. and discussed with him the options for transferring the object of the crime.

Director General of “Multi Group Concern” LLC S.A. transferred 22 million 185 thousand US dollars and 206 thousand 500 euros to the accounts of non-resident entities “VETO GROUP”, “VETO TRUST” and “WEST COAST ESCROW” indicated by G.Kh.’s sons and which were interrelated with them. In order to hide and disguise the criminal nature of the transaction, loan agreements in the amount of 7 million, 10 million and 13 million 400 thousand USD were signed between S.A. and G.Kh.’s sons (not any amount has been returned to S.A. during the years and to date).

In addition, G. Kh.’s sons laundered 1 billion 555 million AMD, 97 million 203 thousand USD, 2 million 65 thousand Euros obtained through criminal means during 2011-2016.

In particular, G.Kh.’s sons A.Kh., G.Kh. and nephew A.Kh. participated and managed about 48 companies operating in the Republic of Armenia and, using G.Kh. advantage of patronage due to the positions they their father held, during the years 2011-2016 they hid the real volumes of the activities of the above-mentioned organizations. As a result, undeclared income of 1 billion 555 million AMD, 97 million 203 thousand US dollars, 2 million 65 thousand euros beyond the control of the tax authority was obtained. During the years 2011-2016, the money obtained through criminal means were provided to A.P. working as a driver in one of the banks and instructed him to deposit cash in the bank accounts given by them in return for remuneration.

A.P. deposited the cash money transferred to him, and then, through a bank transaction, transferred it to the accounts of five companies affiliated with the sons and nephew of the G.Kh., registered abroad, including in offshore zones, not carrying out any economic activity in the RA., combined with other means. The funds were managed by the sons of G.Kh. and their related persons through transfers and cash withdrawals.

In addition, G.Kh.’s nephew A.K., being the sole founder and director of “Mega Food” LLC, in 2011, 2012, 2014, 2015 and 2016, entered obvious false data in the documents submitted to the tax authorities and did not to pay additional tax liabilities of 369 million 439 thousand AMD.

In addition, A.Kh., being the director of the “Apeyron” LLC founded by G.Kh.’s sons, during the years 2011-2016, entered obviously false data in the documents submitted to the tax authorities and did not pay an additional amount of 424 million 555 thousand AMD tax obligations.

The prosecutor initiated public criminal proceedings against G.Kh.’s son A.Kh., pursuant part 2 of Article 38-308 of the Criminal Code adopted on 18.04.2003 (assisting in the abuse of official powers, which inadvertently caused serious consequences ), Article 38-179, Part 3, Clause 1 (supporting the embezzlement of particularly large amounts of property using an official position) and Article 190, Part 3, Clause 1 (particularly large amounts of money laundering (three episodes) , under Article 38-311, Part 4, Clause 2 (assisting in receiving bribes in particularly large amounts), against G.Kh.’s son G.Kh., according to Article 38-308 of the Criminal Code adopted on 18.04.2003 Article 38-179, Part 3, Clause 1 and Article 190, Part 3, Clause 1 (two episodes), Article 38-311, Part 4, Clause 2 (arrest was chosen as a measure of restraint for the latter, a search was announced), against G.Kh.’s nephew A.Kh., according to part 2 of Article 38-308 of the Criminal Code adopted on 18.04.2003 , Article 38-179, Part 3, Clause 1 and Article 190, Part 3, Clause 1 (two episodes) and Article 205, Part 2, Clause 1 (Malicious evasion of paying particularly large taxes, duties or other mandatory payments), against S.A., the Director General of “Multi Group Concern”, according to Article 312, Part 3, Clause 1 of the Criminal Code adopted on 18.04.2003 (giving a bribe in especially large amounts) and under Article 38-190, Part 3, Clause 1 (supporting money laundering in particular large amounts), in relation to driver A.P., under Article 38-190, Part 3, Clause 1 point (assisting in especially large-scale money laundering).

Note: A person that is suspected or accused of an alleged crime is considered innocent until his/her guilt is proved by a court judgment that has come into legal effect pursuant to the procedure determined by RA Criminal Procedure Code.