Investigation of Misconduct by Former Director of the 'Armenia' Fund Concludes

The investigation conducted by the National Security Service of Armenia has concluded, revealing significant misconduct by Ara Vardanyan, who served as the executive director of the 'Armenia' All-Armenian Fund from May 18, 2009, to July 20, 2018. The findings indicate that Vardanyan, with the assistance of a director from a business entity, created, approved, and signed fictitious contracts for the supply of furniture worth 292,833,540 AMD to public schools in the regions of the Republic of Artsakh and Stepanakert. These contracts, along with false handover-acceptance acts, led to the transfer of the aforementioned amount from the fund's account to the company's current account. According to mutual agreement, this sum was embezzled, and no goods were supplied to the specified schools.

Additionally, as part of his official duties, Vardanyan signed a pledge agreement for a credit card limit with Converse Bank on November 21, 2014, using a deposit of 28,000,000 AMD belonging to the Mozian Fund at the same bank as collateral. He subsequently obtained a credit line of 25,000,000 AMD at an interest rate of 19.10 percent, which he used for personal expenses, including online gambling on platforms such as www.pokerstars.com and www.quasargaming.com. Between January 8, 2016, and June 29, 2018, he transferred or withdrew a total of 136,754,357.29 AMD from the credit line for his personal needs, leading to a bank mediation fee of 230,479.94 AMD.

Through these actions, Vardanyan caused significant harm to the 'Armenia' All-Armenian Fund, resulting in serious consequences, including the pledge of the fund's deposit and the inability to allocate these funds for social, charity, cultural, educational, scientific, healthcare, environmental, or other public welfare purposes. Moreover, his actions harmed the reputation of the fund, leading to a notable decrease in donations in subsequent years.

Based on sufficient evidence gathered during the investigation, criminal charges of embezzlement of particularly large amounts, aiding in particularly large theft, abuse of official powers, and official forgery have been filed against Ara Vardanyan and the director of the business entity. On April 13, 2021, the case was sent to the prosecutor overseeing the investigation for confirmation of charges and further judicial examination.

Note: The accused or suspected of the alleged crime is considered innocent until proven guilty by a court decision that has entered into legal force in accordance with the established procedure of the Criminal Procedure Code of Armenia.