Founders and Directors of ‘Security Dream’ and ‘Ellips GY’ Embezzle 770,960,963 Dram: Investigation Committee

The Armenian Investigative Committee has concluded the investigation into a case involving the founders, directors, and several employees of ‘Security Dream’ and ‘Ellips GY’, who allegedly embezzled substantial funds from the state through fraud and forgery.

According to the committee's announcement, it was revealed that on February 15, 2017, a management contract was signed between the Armenian Police's Road Police and ‘Security Dream’ for overseeing traffic management systems. Under this agreement, ‘Security Dream’ was to be compensated 10% of the actual collected fines allocated for violations detected by their technical systems, along with full reimbursement for expenses incurred.

Furthermore, ‘Security Dream’ entered an agreement with ‘Ellips GY’ for the maintenance of these monitoring systems. Large-scale operational and investigative actions led to the acquisition of factual data, showing that the founders, directors, and various employees of these companies devised a scheme to fraudulently embezzle significant amounts from the state. The identities and roles of those involved in the criminal chain have been established, as well as the extent of the damage caused to the state.

Specifically, A. Z., a co-founder and director of ‘Security Dream’ and ‘Ellips GY’, between February 15, 2017, and March 2019, allegedly collaborated with co-founders and directors of both companies and other staff members to create counterfeit official acts of performance that misrepresented the services provided. Using these fraudulent documents, they unlawfully deprived the state of a total of 770,960,963 Armenian Dram.

Out of the total embezzled amount, 290,327,078 Dram has been reimbursed during the investigation by the co-founders, while the remaining amount has resulted in property seizures from four defendants and the financial assets of ‘Security Dream’. Alternative measures have been applied for three of the six accused, including bail for three, a travel restriction for two, and a prohibition on leaving the country for one. The investigation has been completed and the case materials have been sent to the supervising prosecutor for confirmation of the charges and submission to the court.