"North-South" Criminal Case: Charges Filed Against 7 Individuals, Names Released

The Prosecutor General's Office of Armenia, under judicial management, has revealed and substantiated sufficient evidence through a comprehensive investigation carried out by the Investigation Department of the RA NSS, the police, and the employees of the RA State Revenue Committee regarding the "North-South Road Corridor" project. This includes the sub-project for the "Reconstruction and Improvement of the M1 Road from Talin to Gyumri," specifically concerning the construction works for the Talin-Lanjik and Lanjik-Gyumri sections.

During the investigation, it was determined that several companies involved as contractors or consultants created the illusion of fulfilling obligations and forged documentary evidence, unjustly reduced tax liabilities, and distorted the source and nature of certain large sums obtained based on false contracts for services and cooperation. They facilitated the illegal withdrawal of financial resources allocated for the project's implementation by issuing tax invoices without providing services, thus aiding in the evasion of a particularly large amount of taxes by the company. The total damages caused, including calculated fines and penalties, exceed 2.7 billion AMD.

The scheme also involved inspectors from the RA State Revenue Committee. The Prosecutor's office reported that charges were filed against Seydrak Arustamyan, the director of the "Multi Group" conglomerate and the actual head of the company "Stons," which is involved in the aforementioned major road construction program, along with Gurgen Sargsyan, who coordinated the company's activities with him. They face charges under Articles 38-189 (Part 3), 190 (Part 3, Clause 1), and 38-205 (Part 2) of the RA Criminal Code. Other individuals charged include Suren Avagyan, the other coordinator, and the chief accountant of "Stons," who faces additional charges under Articles 325 (Parts 1 and 2) and 313 (Part 1).

Two employees of "Stons" and one employee from a printing house have also been charged. During the pre-trial investigation, 1 billion AMD was transferred to the deposit account of the RA Investigative Committee as a guarantee for the damages caused by the aforementioned actions of the company’s managers and employees.

The senior prosecutor supervising the legality of the pre-trial investigation confirmed the prosecutorial conclusions regarding these episodes, and the criminal case has been sent to the Yerevan Court of General Jurisdiction for substantive examination. It was noted that the investigation against inspectors from the RA State Revenue Committee had earlier concluded, and their cases had previously been sent to court with an indictment.

In connection with the criminal case regarding the "North-South Road Corridor" project, a complete, objective, and comprehensive investigation continues under consistent prosecutorial oversight and management.