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Preliminary Investigation of one of the Counts of Abuses Committed within Development and Implementation of «North-South Road» Program Completed

25.09.2021 17:24

In the result of large-scale investigative and other procedural actions conducted, operative-intelligence measures taken by the employees of General Department of Investigation of Particularly Important Cases of the RA Investigative Committee, the Investigative Department of the RA National Security Service, the RA Prosecutor’s Office, the RA Police and the RA State Revenue Committee circumstances of abuses committed in the process of development and implementation of «North-South Road» program were found out.

Pursuant to factual data obtained through investigation, the Director of «Multi Group Concern» Sedrak Arustamyan actually managing the activity of «Stones» LLC, from June 10 to August 8, 2016 being 100% shareholder of «Stones» LLC, together with Suren Avagyan and Gurgen Sargsyan who coordinated the work of the company with him, being induced by the representatives of the Armenian branch of contractor «Sinohydro Corporation» LLC implementing construction work on Talin-Lanjik and Lanjik-Gyumri sections within the program «Reconstruction and Improvement of Road M1 from Talin to Gyumri» of «North-South Road» program reached agreement on withdrawing funds from the company through tax accounts without providing the Armenian branch of «Sinohydro Corporation» LLC with services and thus supporting the company to evade from taxes in particularly large amount. In order to realize this, on June 8, 2016 together with Suren Avagyan and Gurgen Sargsyan, who coordinated the work of the company with him, he organized signing of 2 contracts on providing consulting services between «Stones» LLC and «Sinohydro Corporation» LLC on the part of construction work in Talin-Lanjik and Lanjik-Gyumri sections.

After signing the contracts, on 25 December, 2017 681.705 Euros and 1.652.277 USD in total tantamount to 1.139.665.469 AMD was transferred to “Stones” LLC by «Sinohydro Corporation» LLC as a prepayment.

In order to create document bases and illusion of fulfilling the duties allegedly taken up within the mentioned contracts, to unreasonably reduce the tax liabilities of “Stones” LLC as well as to distort the real nature and criminal source of the money in particularly large amount - 1.139.665.469 AMD received on the base of false contracts on service provision and cooperation, pursuant to the agreement reached by Sedrak Arustamyan, Suren Avagyan and Gurgen Sargsyan, organized by Gurgen Sargsyan and the chief accountant of the company, with prior agreement with two employees of “Stones” LLC, in case of receiving monetary remuneration by the latters, without intend to conduct entrepreneurial activity, on October 10 and November 11, 2016 «M-S Consulting» and «Gevorgyan Consulting» LLC-s were founded, accordingly and at the same period «Stones» LLC signed contracts on allegedly providing consulting services with them.

After signing the above-mentioned contracts the chief accountant transferred 140.000.000 AMD of the funds received in “Stones” LLC in a criminal way to the account of «M-S Consulting» LLC and 124.800.000 AMD – to the account of «Gevorgyan Consulting» LLC as a prepayment for services allegedly provided by the latters.

Directors of «M S Consulting» and «Gevorgyan Consulting» LLC-s, acting by the instruction of Gurgen Sargsyan and the chief accountant of the company, not implementing work within the mentioned contracts but actually working in «Stones» LLC, from the amount transferred to «M-S Consulting» LLC and «Gevorgyan Consulting» LLC as a prepayment, kept 12 million and 8 million AMD, accordingly, as remuneration promised to them. In order to present the money received in a criminal way as legal, the money - 9.200.000 AMD and 8.700.000 AMD subject to payment as taxes for the alleged activity of the company, and the rest of the money - 118.800.000 AMD and 108.100.000 AMD - 226.9 million AMD, in total, from October to November, 2016 was transferred to Sedrak Arustamyan formulating as other expenses for the needs of the company who received and possessed it.

In order to make the cash withdrawals look legal from December 20, 2016 to November 3, 2018 in the name of the directors of «M-S Consulting» and «Gevorgyan Consulting» LLC-s the chief accountant made 44 false tax accounts of 177.000.000 AMD for services allegedly provided to «Stones» LLC and 44 false tax accounts thus completing the actions directed to legalization of the money received in a criminal way.

Going on with the activities directed to legalize the property received in a criminal way the chief accountant of the company, pursuant to the criminal agreement reached by Sedrak Arustamyan, Gurgen Sargsyan and Suren Avagyan, by their instruction, in order to distort the source of 603 million AMD in total of the funds received in a criminal way from the Armenian branch of «Sinohydro Corporation» LLC, formulated a dividend and from September 2016 to December, 2017 outdrawing in the bank under the mentioned pretext transferred it fully to Sedrak Arustamyan who received and possessed it after which the rest of the money was used to fulfill the tax liabilities arising from the transactions.

The above-mentioned tax accounts withdrawn by «M S Consulting» and «Gevorgyan Consulting» LLC-s to «Stones» LLC were a base to withdraw tax accounts on allegedly providing consulting services to Armenian branch of «Sinohydro Corporation» LLC by «Stones» LLC based on which company’s chief accountant, acting by the instruction of company’s leaders, from December 27, 2016 to July 18, 2018 made delivery-acceptance acts in the name of directors of «Stones» LLC as well as based on them, within the mentioned contracts made false tax accounts on allegedly provided services and submitted to «Sinohydro Corporation» LLC for confirmation which were accepted by the company’s director and accountant by the instruction of representatives of Armenian branch of «Sinohydro Corporation» LLC. Based on them 1.167.409.328,31 AMD was groundlessly transferred to “Stones” LLC from funds of «Sinohydro Corporation» LLC and in order to evade taxes they  involved those data in non-resident income tax report on company's activity of 2016-2017 and VAT calculations to be submitted to State Revenue Committee adjunct to RA Government, as prescribed by law. As a result, Armenian branch of «Sinohydro Corporation» LLC evaded from paying taxes in particularly large amount - 240.321.559 AMD causing the state damage in particularly large amount which makes 2.729.457.229 AMD, in total, together with penalties calculated for withdrawing false documents on providing services.

Besides, the chief accountant of the company, in order to ground the circumstances that the money received in “Stones” LLC in the result of the above-mentioned criminal activities was allegedly spent by “Stones” LLC on fulfilling the contractual obligations undertaken within the «North-South Road» program, to conceal the crime traces, for the purpose of forging the cash book of “Stones” LLC which had already been formed, filled and ratified by the tax service, reached agreement with the employee of Private Entrepreneur engaged in printing polygraphic products. Pursuant to the agreement, on February 1, 2020 he gave the cash book of “Stones” LLC to the latter who replaced the pages from 32 to 50 formed and confirmed by the cashier and accountant of the company in the preceding period with new empty pages of cash book given by the chief accountant. Then on February 7 she returned the replaced false cash book to the chief accountant. The latter filled it with false data and on April 16, 2020 presented the cash book to the investigative body.

Besides, the chief accountant of the company providing accounting services to the LLC engaged in flour production and sales and from February 17, 2020 being directly involved in comprehensive tax audit conducted in the mentioned LLC by chief tax inspectors of the RA State Revenue Committee, as well as being aware that the director of the company was ready to give bribe in case violations were found in the company, on March 2, 2020 learning about the volume of the found violations, he contributed to reaching agreement on bribe between the company director and chief inspectors.

On the next day – on March 3 a meeting was held in the office of the LLC owned by the chief accountant of the company during which the inspectors required money in particularly large amount – 30.000 USD tantamount to 14.807.400 AMD as a bribe not to do actions within their competencies in favor of the LLC director – not to record the found violations and not to generate additional tax liabilities. The latter accepting the offer told that he would pay the required money part by part promising to give the first part on the day when he would receive the zero audit invoice. Agreeing with the offer one of the inspectors induced the LLC accountant carrying out the company’s accountancy to compile a new inventory invoice dated 19 February, 2020 and to mention the company balance corresponding to the accounting data in order to cover up the deficit, accordingly not to record it and based on it not to fine the company.

Within the criminal agreement on receiving bribe from LLC director the employees of the RA State Revenue Committee did not carry out their service duties, abusing their official position against service interests and on 19 March, 2020 compiling the invoice which was an official document they did not mention about the deficit found in the result of the audit and the fine to be applied. Instead, they introduced fake data on not finding any violations thus causing significant amount to legal interests of the state.

After compiling the mentioned invoice on 20 March, 2020 one of the inspectors met the LLC director on the 15th km section of Yerevan-Sevan road to give the invoice to the latter to sign and to receive a part of the bribe. The LLC director gave him the part of the bribe amount and the latter gave him the audit invoice on not finding any violations. Immediately after giving the bribe amount the LLC director and one of the inspectors were caught by the employees of the RA National Security Service.

On the base of the obtained sufficient evidence charge was pressed against Sedrak Arustamyan and Gurgen Sargsyan according to the Part 3 of the Article 38-189, the Point 1 of the Part 3 of the Article 190 and the Part 2 of the Article 38-205 of RA Criminal Code, charge was pressed against Suren Avagyan according to the Part 3 of the Article 38-189, the Point 1 of the Part 3 of the Article 38-190 and the Part 2 of the Article 38-205 of RA Criminal Code, against the chief accountant of “Stones” LLC – according to the Part 3 of the Article 189, the Point 1 of the Part 3 of the Article 190, the Part 2 of the Article 38-205, the Part 2 of the Article 325, the Part 1 of the Article 325 and the Part 1 of the Article 313 of RA Criminal Code. Mortgage was chosen as a pretrial measure against them. Charge was pressed against the employees of “Stones” LLC according to the Point 1 of the Part 3 of the Article 190 of RA Criminal Code, and against the employee of Private Entrepreneur engaged in printing polygraphic products – according to the Part 2 of the Article 325 of RA Criminal Code. Signature not to leave was chosen as a pretrial measure against them.

As a guarantee of recovery of the damage caused by the criminal actions committed by the above-mentioned leaders and employees of “Stones” LLC 1 billion drams have been transferred to the deposit account of the RA Investigative Committee.

Preliminary investigation was completed and the criminal case with the motion to confirm the bill of indictment and send it to court was sent to the prosecutor.

As for the two chief tax inspectors of the RA State Revenue Committee and the LLC director it was earlier informed that charges were pressed against them, preliminary investigation was completed and the criminal case with the bill of indictment was sent to court.

Note; Everyone charged with alleged crime offence shall be presumed innocent until proved guilty according to law.

 


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