Fake Documents Used to Steal Property from Former Residents of Northern Avenue; Pursuers Identified

The Investigative Committee of Armenia has uncovered significant details in a criminal case related to the fraudulent acquisition of real estate owned by several citizens in the former area of Northern Avenue, Yerevan.

According to the committee, H.A., the director of a real estate appraisal company, cooperated with A.K., the director of a developer company, in a scheme to deceive and breach trust by stealing property worth 666,765,500 AMD from 12 owners through fraudulent means. This included the use of blatantly forged official documents.

On July 16, 2001, the Armenian government approved a decision to allocate specific real estate for state needs within the Northern Avenue area, covering 82,700 square meters. Several parcels of land and properties in the vicinity of Abovyan, Arami, and Nalbandyan Streets were included in this expropriation plan.

The city of Yerevan was authorized to conduct real estate appraisals through licensed organizations within a two-month period. Furthermore, to address compensation for citizens and legal entities linked to acquiring these properties, a decision was made in October 2001 establishing procedures for price proposals and compensation methodologies, which allowed for payments in forms other than cash.

A decision made by the Armenian government in 2004 allocated a 8,620 square meter parcel from Northern Avenue for a development project. A.K. was the director of the constructing company that received this parcel.

The inquiry established that H.A. collaborated with A.K. by engaging in an organized scheme to fraudulently acquire significant real estate and monetary assets belonging to various individuals. Contracts were signed with companies closely connected to A.K. at unrealistically low appraisal values, allowing A.K. to purchase these properties for substantially less than their real market value.

In particular, two contracts for real estate appraisal services were signed between September 2005 and April 2007, which detailed the valuation of properties adjacent to Northern Avenue. Based on these contracts, the appraisal company was instructed to create false reports of property values, which A.K. used to negotiate purchases at prices significantly below market rates.

The developer convinced property owners to sign settlement agreements by offering slightly higher sums than initially proposed, alongside false promises of compensatory spaces in the future development project. However, these agreements were not honored.

Criminal proceedings have been initiated against H.A. under the previous Criminal Code’s Articles 38-178, Part 3, Point 1, and 325, Part 1, as well as A.K. under Articles 178, Part 3, Point 1, and 325, Part 1 of the pre-existing Criminal Code.

During the preliminary investigation, the total damages caused to the individuals, amounting to 666,765,500 AMD, were fully restored.