Case of Creating a Branch of a Financial Pyramid and Involving Large Sums Disclosed

The National Security Service of Armenia has uncovered a case involving the creation and management of a branch of a financial pyramid, as well as the involvement of substantial sums of money, through operational and investigative measures undertaken in accordance with its statutory powers to combat crime, while adhering to the principle of protecting citizens' rights from internal and external threats.

According to the factual data obtained, a group of individuals in Armenia aimed to expand the activities of an organization providing tourist services through an internet site characterized by the features of a financial pyramid, which was registered abroad. Since November 2018, they have advertised the potential to earn income in exchange for payments for the services of the organization during various discussions and classes.

As a result, these individuals convinced many citizens of Armenia to engage in the organization's “business program” and, with prior consent, effectively created and managed a branch of the financial pyramid, involving particularly large sums of money. The material benefits of the members were conditioned exclusively on the funds obtained from the involvement of new investors.

In connection with the apparent criminal act, a criminal case has been initiated in the investigative department of the National Security Service of Armenia under the relevant article of the Criminal Code, and an investigation is underway. Measures are being taken to identify all individuals involved in the criminal scheme, to provide an appropriate legal assessment of their actions, and to clarify the damages incurred.