Conductor Sergey Smbatyan and His Father Arrested

Conductor Sergey Smbatyan and his father, Extraordinary and Plenipotentiary Ambassador Armen Smbatyan, have been arrested. This information was provided by the Prosecutor's Office of Armenia.

It is noted that on July 27, criminal prosecution was launched by the prosecutor against father and son, A.S. and S.S., as well as businessman A.P.

According to the criminal proceedings, in 2012, Ambassador A.S., his son conductor S.S., and businessman A.P. submitted a false investment project to the Government of the Republic of Armenia for the construction of a multifunctional complex called 'World of the Book,' valued at 800 million drams, and fraudulently seized a plot of land with an area of 300 square meters, worth 166 million 103 thousand drams, granted for free use to the 'Pyotr Tchaikovsky Secondary Musical School of Yerevan' at 36 Koghbatsi Street in Yerevan.

Specifically, A.S. convinced his relative H.A. to establish the company 'Sokhosentr' CJSC in the name of his son S.S., under the pretext of not engaging in business activity. Subsequently, H.A. and G.D., who was close to H.P., who served as the Minister of Culture of the Republic of Armenia from 2012 to 2016, founded 'Sokhosentr' CJSC on February 17, 2012. Four days after its establishment, on February 21, 2012, the director of the company, N.K., presented an investment program to the Mayor of Yerevan. This program proposed to allocate a plot of land of 300 square meters from 36 Koghbatsi Street for the construction of the 'World of the Book' multifunctional complex, in connection with the 500th anniversary of Armenian book printing and Yerevan's recognition as the World Book Capital by UNESCO in 2012.

The company committed to not only construct the 'World of the Book' multifunctional complex with an investment volume of 800 million drams but also to carry out additional construction works worth 102 million drams to improve the conditions of the 'Pyotr Tchaikovsky Secondary Musical School of Yerevan.'

The Mayor of Yerevan addressed the proposed investment program to H.P., the Minister of Culture of Armenia, to obtain a conclusion. In response, H.P., being informed about the real intention of 'Sokhosentr' CJSC to use the land for non-educational purposes and to construct a multifunctional building on it, did not object to the submitted investment program.

The mentioned program was also approved by the 'Pyotr Tchaikovsky Secondary Musical School of Yerevan' represented by its director, M.K., who was, in turn, the brother of N.K., the director of 'Sokhosentr' CJSC. As a result, by the decision of the Government of Armenia No. 1052-A dated July 26, 2012, the aforementioned program was approved.

According to the first point of the third part of the Government's decision, the Minister of Culture H.P. was authorized to conclude a pledge agreement to secure the rights of ownership to the land plot and the boiler house, as well as the commitments for the implementation of the construction of the 'World of the Book' multifunctional complex (the pledged assets included the 300 square meter plot and a 35.3 square meter boiler house at 36 Koghbatsi Street until the completion of the specified works and their commissioning in accordance with the procedures established by the legislation of the Republic of Armenia).

Subsequently, on December 3, 2012, the Minister of Culture H.P., abusing his official powers to the detriment of state interests, entered into contracts for 'Transfer of Property and Security' and 'Principal Obligation' with 'Sokhosentr' CJSC, intentionally failing to include the main investment obligation stipulated by the Government's decision, namely the performance of the obligation of 800 million drams for the construction of the 'World of the Book' multifunctional complex by 'Sokhosentr' CJSC.

As a result, H.P. allowed the shareholders of 'Sokhosentr' CJSC to register ownership rights to the 300 square meter plot separated from the state on November 3, 2016, without fulfilling the stipulated obligation, causing the state property damage amounting to 966 million 103 thousand drams.

By the decision of the supervising prosecutor on July 27, 2023, A.S. was charged under the first part of Article 178, part 3 of the Criminal Code of the Republic of Armenia adopted on April 18, 2003 (organizing fraud in large amounts), S.S. under Article 178, part 3, and A.P. under Article 178, part 3 (fraud in large amounts).

A.S. and S.S. were arrested on July 29, 2023. Measures are being taken to locate A.P.