Real Estate at 4 Tsitsernakaberd Highway Attempted to Be Acquired at Five Times Lower Than Cadastral Value

The Prosecutor General's Office of Armenia has announced that an attempt was made to acquire the real estate located at 4 Tsitsernakaberd Highway at a price five times lower than its cadastral value.

The Prosecutor's Office has released a statement indicating that the prosecutor has referred the case to court.

The director of the Community Sports Center LLC established the company 'Olympic Future' LLC in the name of a related individual from 2003 until December 2, 2019, and formally registered it under that name on February 5, 2007. On May 23, 2007, a lease agreement was signed for a period of 25 years with the 'Olympic Future' LLC, which is owned by the director of the Community Sports Center LLC. This agreement transferred the rights to manage and control a property located at 4 Tsitsernakaberd Highway (a school-center) measuring 6580.8 square meters and a land area of 1.1807 hectares, which had been handed over to the Community Sports Center LLC in 2003.

From May 23, 2007, until June 30, 2019, 'Olympic Future' LLC, through contracts with various organizations, leased out properties (gymnasiums) owned by the Community Sports Center LLC, generating an income of 110,569,800 AMD, of which only 56,100,000 AMD was transferred to the Community Sports Center LLC.

Additionally, the director of the company, owning 'Eastern Oasis' LLC since November 24, 2000, conducted business offering café and hotel services in one of the buildings located at 4 Tsitsernakaberd Highway.

The company director also intended to fraudulently appropriate the real estate at 4 Tsitsernakaberd Highway, including the 6580.8 square meter area and the 1.1807-hectare land. To this end, on May 23, 2007, it was stipulated in the lease agreement that the lessee has the right to purchase the property for 56,142,000 AMD.

Subsequently, all 10 shares of 'Olympic Future' LLC, managed by the company director, were sold by a related person to the director's wife. The crime was not completed due to circumstances beyond their control, as an application was submitted to the State Committee of the Republic of Armenia by the administrator of the bankruptcy case of 'Olympic Future' LLC and the new director of the LLC to perform a state registration of the termination of rights.

On February 7, 2024, the supervising prosecutor initiated public criminal proceedings against the company's director under Article 277, Part 2, Clause 2 of the Criminal Code (abuse of official powers or authority in the private sector), Article 44-255, Part 3, Clause 3 (attempted fraud), and Article 457, Part 1 (forgery of documents, seals, stamps, forms, or the use, preparation, or production of forged documents, seals, and stamps). The prosecutor confirmed the indictment against the company's director and his wife on February 15, 2024, and submitted the case materials to court.

Notice: The accused is presumed innocent until proven guilty in accordance with the procedure established by the Criminal Procedure Code, by a legally binding judgment of the court.