Armenia's ex-ambassador to Israel, his son detained over fraud

Former Armenian Ambassador to Israel Armen Smbatyan and his son, chief conductor of the State Symphony Orchestra Sergey Smbatyan have been detained on suspicion of fraud, as a result of which the state suffered property damage in the amount of AMD 966 million ($2.5 million),  the press service of the Armenian Prosecutor General's Office said.

Entrepreneur A.P. is also involved in the case, Caliber.Az reports with reference to Armenian media.

According to the case materials, in 2012 the three suspects submitted to the government a fake investment programme for the construction of the World of Books multifunctional complex worth AMD 800 million ($2 million) and fraudulently obtained a 300 sqm land plot belonging to the Tchaikovsky Music School. 

The investigation found out that Smbatyan Sr. persuaded his acquaintance H.A. to found "Sohosentr" company, which the latter did together with a relative of former Culture Minister Hasmik Poghosyan, a certain G.D. After that the company submitted an investment project to the Municipality, the city authorities sent the project to the Culture Minister, who did not object. The director of the Tchaikovsky Music School M.K., who is the brother of the director of "Sohosentr" company N.K., also gave his consent to the mentioned programme.

As a result, the government approved the investment programme, and the minister signed an agreement with the company, without including the obligation to implement the programme. Thus, the shareholders of the company privatised the property without assuming any obligations.

By the decision of the supervising prosecutor Armen Smbatyan is accused of organising fraud in especially large amounts, and Sergey Smbatyan and A.P. are accused of fraud in especially large amounts. Actions are being taken to detect the latter.