Both Armen Smbatyan, the former ambassador of Armenia to Israel, and his son, Sergey Smbatyan, the creative director and chief conductor of the Armenian State Symphony Orchestra, have been detained on suspicion of committing exceptionally egregious fraud.
Real estate fraud accused are arrested (Photo: T-Nation)
The accused of real estate fraud
The 300 square meter site of the Yerevan Tchaikovsky Music School was allegedly taken by Smbatyan, according to the General Prosecutor’s Office, who is also accused of causing the state to lose one billion drams as a result of his acts.
The department revealed that the “Sochocenter” company intended to build a multi-purpose complex called “Book World” in commemoration of Yerevan’s designation as the world’s book capital in 2012 and the country’s 500th anniversary of printing. The business also provided its own resources to construct a new boiler house and performance hall for the Tchaikovsky School.
In 2012, the government awarded the “Sochocenter” business—owned by the Smbatyan family, according to law enforcement officials—a central area valued at approximately 170 million dollars. The Prosecutor’s Office declared the investment proposal to be fraudulent and intended to plunder the territory when the company began building a 17-story commercial center rather than carrying out the stated project.
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The investigation of real estate fraud
The Smbatyan family has not yet responded to the allegations, and it has been impossible to contact their legal counsel. Hasmik Poghosyan, who is the subject of the investigation, is also considered an accused party in this case, and officials are currently hunting for co-founder Arman Petrosyan.
The police have been looking at this concern for certain periods.
The former ambassador Armen Smbatyan, who has held a variety of positions in Armenia, allegedly convinced a relative, Avag Smbatyan, to launch the “Sochocenter” company on behalf of Sergey Smbatyan in order to avoid connecting his son’s name with commercial ventures. A second creator of the company is a former minister of culture who was connected to Hasmik Poghosyan, who is currently under investigation.
It is important to point out that Sergey Smbatyan holds positions in Malta in addition to leading the Armenian Symphony Orchestra.
