Sedrak Arustamyan Bribed Gagik Khachatryan’s Sons with a Large Sum: New Details Unveiled

The Prosecutor General’s Office of Armenia, adhering to its approach of providing the public with regular updates on the progress and outcomes of high-profile criminal cases, reports that based on extensive evidence collected during the investigation by the National Security Service’s investigative department, criminal proceedings have been initiated against the former head of the State Revenue Committee (SRC) of Armenia, Sedrak Arustamyan, his four close associates, and three individuals holding senior positions within the SRC.

The Office of the Prosecutor General indicates that numerous instances of official and economic crimes have been uncovered in this unprecedentedly large-scale criminal case, including bribery on a particularly large scale and the legalization of property acquired through criminal means.

Specifically, during the pre-trial investigation, it was revealed that Sedrak Arustamyan, the General Director of “Multi Group Concern” LLC, bribed Gagik Khachatryan—who served as the head of the SRC from 2008 to 2014 and became the Minister of Finance from 2014 to 2016—with an amount equivalent to 8,142,315,480 AMD, or 22,401,000 USD, through his sons. This was done in exchange for general patronage by the high-ranking official, ensuring that no obstacles were created by tax and customs authorities regarding the operations of the businesses he represented, shielding these companies from administrative intervention, and facilitating the issuance of favorable administrative acts when applicable.

At the initiative of Gagik Khachatryan’s sons, Sedrak Arustamyan transferred the bribe amount to bank accounts of foreign entities indicated by Khachatryan’s sons, thereby concealing its criminal origin, true nature, source, and ownership during the year 2011. Additionally, to further disguise the criminal nature of the transaction, loan agreements amounting to 7,000,000 USD and 13,400,000 USD were concluded between them, while Sedrak Arustamyan has never received any repayment from these amounts over the years.

Based on a sufficient combination of evidence obtained during the pre-trial investigation, Sedrak Arustamyan has been charged under Articles 38-190, Part 3, Point 1, and 312, Part 3, Point 1 of the Criminal Code of Armenia for giving a particularly large bribe of 22,401,000 USD and for assisting in the legalization of this criminally obtained large sum. He has been detained as a preventive measure.

Criminal proceedings have also been initiated against other individuals involved in the crime, and administrative measures have been taken to secure the possible confiscation and recovery of assets and legal costs, with seizures placed on properties belonging to the accused. The pre-trial investigation is ongoing.

Efforts are being made to comprehensively uncover corruption-related crimes, identify all individuals involved in their commission, and determine the participation of those involved in other criminal activities tied to the corrupt scheme. Additionally, measures are being taken to verify the legitimacy of the origin of the funds serving as the bribe, considering that the accused Sedrak Arustamyan has claimed the existence of 22,401,000 USD is conditioned by his maternal grandfather's service in the Soviet army during the 'Iran War,' and the circumstances of bringing large quantities of gold—referred to as “Shah’s gold”—and transferring it to him by his grandmother in 1987.