Former MP Illegally Enriched and Legalized Assets Obtained Through Criminal Means

The investigative department of the Anti-Corruption Committee of Armenia has completed a remote investigation regarding former MP Arthur Gevorgyan's concealment of declarable data, illegal enrichment, and large-scale money laundering.

A decision was made on July 3, 2023, to conduct a remote proceeding given that the accused A. G. has evaded participation in the criminal process. The materials of the proceeding have been submitted with an accusatory conclusion to the supervising prosecutor for a court submission.

According to the Anti-Corruption Committee, it has been established that A. G., as a public official obliged to submit a declaration, presented a declaration to the Corruption Prevention Commission on May 4, 2018, concerning his properties, income, and related parties for the year 2017, in which he concealed three properties of significant value owned by him in the United States of America. Specifically, he acquired apartments in the Woodland Hills and Glendale districts of Los Angeles for $490,000 and $520,000 in 2011 and 2015, respectively, as well as another apartment in the Valley Village neighborhood purchased for $475,000 in 2016 and the declaration of acquiring a 100 percent stake in Arviv LLC in 2017.

On February 7, 2019, during the declaration of existing assets, income, and connected persons presented to the Corruption Prevention Commission upon the termination of official obligations, A. G. again concealed the aforementioned properties and the data related to having a 100 percent stake in Arviv LLC.

Additionally, the investigation established that A. G. illegally enriched himself in 2019, declaring legal income of AMD 114,660 during this period, whereas his expenses exceeded AMD 24 million, significantly surpassing the reported legal income—an increase that is not reasonably accounted for.

Moreover, the investigation revealed that as a result of illegal actions by certain responsible officials of Yerevan Municipality, A. G. (who served as the head of the Davtashen administrative district from 2009 to 2012) acquired communal property—a land plot of 2000 sq. m—on February 2, 2010, through direct sale at a significantly lower market price, for AMD 9,048,000, despite its cadastral value. On July 21, 2011, A. G. again acquired another 3500 sq. m land plot within the same community through direct sale at an equally lowered price of AMD 15,834,000. Subsequently, A. G. alienated these two plots in 2018 for AMD 176,346,000 and AMD 308,654,000, respectively.

Simultaneously, during the years 2012-2018, he expended an unidentified source of funds totaling AMD 90,333,097 derived from legitimate income. In his annual declaration for 2015, he stated having $720,000 at the beginning of the year, and at the end of 2017, this amount was reported as $660,000, while the total amount transferred to his bank accounts registered in the U.S. during 2015-2017 reached $967,700, exceeding his initial declaration by $247,700. Consequently, it remains unclear how A. G. conducted this transfer of $247,700.

To conceal the illegal origin of these significant financial resources and properties obtained from the criminal activities and illegal enrichment, A. G. introduced them into legal circulation by acquiring several vehicles and real estate between 2012 and 2019, including the aforementioned three apartments in Los Angeles worth a total of $1,485,000, as well as a house in Glendale purchased for $1,525,000 in 2019.

A. G. has been charged under Articles 310.1, 314.3 (part 2, three episodes), and 190 (part 3, clause 1) of the former Criminal Code of Armenia. A warrant has been issued for his arrest, and detention has been chosen as a preventive measure.