Gagik Tsarukyan, another alleged member of criminal group detained on charges of large-scale fraud and money laundering

Businessman and Prosperous Armenia Party leader Gagik Tsarukyan has been detained on charges of organising large-scale fraud and money laundering.

The Armenian Investigative Committee announced the development in a statement.

According to the Investigative Committee, evidence obtained in one of the criminal proceedings being investigated by its Main Department for the Investigation of Economic Crimes and Smuggling indicates that, between 2022 and 2024, several individuals allegedly committed large-scale fraud and large-scale money laundering under the organisation of Gagik Tsarukyan.

According to the investigation, members of the alleged criminal group organised and led by Tsarukyan reached agreements with Iranian citizens to develop Iran-Armenia trade relations and established joint legal entities for that purpose.

The statement alleges that, under the guise of establishing a logistics and freight transport link between Iran and Armenia, the group fraudulently imported 52 vehicles, machinery, fuel and various other goods from companies owned by Iranian entrepreneurs. It further alleges that the suspects falsified customs import declarations and other official documents to conceal the imports and misappropriated property worth about 8.127 billion drams (equivalent to approximately $21.073 million).

Investigators further allege that the group laundered the proceeds by falsifying import documents, transferring part of the goods using forged documentation, selling the assets and mixing the proceeds with legitimate business income in order to conceal the criminal origin of the property and funds.

The Investigative Committee also alleges that Tsarukyan, as the beneficial owner of a limited liability company registered in Armenia, conspired with R.K., who is engaged in fuel imports and sales, to fraudulently obtain $934,465 from an Iranian citizen identified as Y.I. in connection with a fuel import transaction. According to investigators, those funds were subsequently integrated into the lawful turnover of the company to conceal their alleged criminal origin.

Based on the evidence obtained, criminal charges have been brought against Tsarukyan for allegedly organising two counts of large-scale fraud and two counts of large-scale money laundering. Charges have also been filed against two other alleged members of the group.

As part of the investigation into more than 10 criminal cases involving alleged large-scale fraud, money laundering and tax evasion, law enforcement officers from the National Security Service, the State Revenue Committee and the Ministry of Internal Affairs conducted simultaneous searches at more than 70 locations. According to the Investigative Committee, investigators seized documents, evidence relevant to the proceedings and some of the allegedly misappropriated vehicles.

Tsarukyan and another alleged member of the criminal group have been detained pending their appearance before a court, while a detention order has been issued for another suspect.

The Investigative Committee said decisions had been adopted to detain the accused for the purpose of bringing them before the court.

Notice: A person charged with a criminal offence is presumed innocent until proven guilty by a final court verdict that has entered into legal force, in accordance with the Criminal Procedure Code.