Video: A Concealed Financial Pyramid Uncovered in Armenia

The Investigative Committee of the Republic of Armenia's Main Investigation Department has revealed details regarding a concealed financial pyramid operating since 2013 within the territory of the Islamic Republic of Iran and registered in the United Kingdom under the name "Vodanet British LTD." This pyramid involved criminal collaboration with citizens from Iran, Canada, and several citizens from the Republic of Armenia, operating in Armenia since 2016.

According to the Investigative Committee, within the framework of the initiated criminal case, it has been established that members of the criminal group operating under the name “VODA” organized and launched a system for recruiting new members and property transfers prohibited by law and morally distorted. As a result, under the pretext of providing the opportunity to conduct business with an “internationally reputable company” and earn substantial profits, they gathered numerous individuals through stage training courses, persuading them to register on the platforms “voda.net” and “vodanet.io” and make apparent hotel package reservations ranging from $450 to $21,000, which were presented as guaranteed investments in exchange for permission to operate within the company.

The Committee notes that in order to minimize the redistribution of funds accumulated in the pyramid among participants outside the criminal group, and to prevent the operation of the packages purchased by new investors, functional systems for income generation and redistribution were developed, as well as an operational timeframe for the packages that created evidently adverse conditions for the majority seeking to utilize them.

During the period from June 20-22, 2018, the operations of “Vodanet British LTD” were suspended due to the criminal prosecution actions by the law enforcement agencies of the Islamic Republic of Iran. Consequently, the activities of the websites “voda.net” and “vodanet.io” were terminated, resulting in the dissolution of the pyramid structure and its division among several groups. Subsequently, several members of the criminal group reorganized and registered a company named “Onyxum” in Canada, launching its operations online with the website “onyxum.com.” They attempted to regain previously involved human resources by taking over the operations of the organized criminal group under the name “Vodanet British LTD” and continued to attract new investors in Armenia using a developed and refined methodology, with the intent to gain property profit from new investments without intending to use the resources for legitimate business activities.

To implement this goal, territorial offices with the same name were established in Yerevan and various locations in Armenia, where numerous citizens were recruited under the guise of stage training courses. They were led to believe that they could make seemingly affordable high-class hotel package purchases and acquire the right to sell travel packages profitably within the system of an “internationally reputable company.” The prerequisite for participating in this scheme was to purchase a travel package, meaning making a certain degree of property investment. The only way to earn money was tied to the recruitment of new investors and receiving certain percentages from their purchases.

Based on sufficient evidence, criminal charges have been brought against 11 members who created and coordinated the financial pyramid operating under the names “VODA” and “Onyxum.” Investigations in the criminal case are ongoing, with necessary measures being undertaken to clarify the full scope of individuals involved in the crime and to hold them accountable. The Investigative Committee urges citizens to refrain from using the services provided by the website “Onyxum.com,” the offices of the same-named company, and other companies offering similar services, as the likelihood of becoming a victim of a crime is significantly high.

Notification: The suspect or accused in the alleged crime is presumed innocent until proven guilty according to the procedure established by the Criminal Procedure Code of the Republic of Armenia and by a valid court judgment.