Pursuant to the Prosecutor’s decision of August 29, 2026, the public criminal prosecution initiated on June 7, 2026, against G.Kh., the former Chairman of the State Revenue Committee under the Government of the Republic of Armenia and former Minister of Finance, within the framework of criminal proceedings under investigation by the Investigative Committee, was amended and supplemented, and new public criminal prosecution was also initiated against him.

1.    Receiving a bribe in an especially large amount from S.M., the director of “Progress Armenia” LLC and “Local Developers” LLC, and acquiring property in exchange for the bribe

G.Kh., the former Chairman of the State Revenue Committee under the Government of the Republic of Armenia and former Minister of Finance, is accused of receiving real estate as a bribe from S.M., the director of “Progress Armenia” LLC and “Local Developers” LLC, during the period from 2008 to 2010, in exchange for providing general protection and patronage in connection with his official duties, ensuring that the tax and customs authorities did not create obstacles to the companies’ activities, keeping their economic activities as free as possible from administrative interference, easing supervisory measures, and, in certain cases, adopting more favorable administrative acts.

          Two apartments and four parking spaces located at 3 Northern Avenue, Yerevan, were registered in the name of G.Kh.’s son, Gr.Kh., while three premises located in the building at 5 Northern Avenue were registered in the names of G.Kh.’s sons, Gr.Kh. and A.Kh.

For the purpose of concealing the criminal origin of the properties and giving their acquisition an appearance of legality, the transactions were carried out under sham sale and purchase agreements, which stated prices substantially lower than the market value of the properties. Specifically, the total acquisition price stated in the sham sale and purchase agreements concluded for the alienation of the real estate amounted to AMD 484 million, whereas, at the time the transactions were concluded, their total market value amounted to AMD 2 billion 179 million 51 thousand.

 

2.    Misappropriation of AMD 174 million 581 thousand, among other amounts, in the course of construction works at the “Dilijan” Training Center

G.Kh., the former Chairman of the State Revenue Committee under the Government of the Republic of Armenia and former Minister of Finance, is accused, among other things, of misappropriating AMD 174 million 581 thousand from the state budget.

In particular, during the period from 2011 to 2017, for the purpose of reconstructing and furnishing the “Dilijan” Training Center, a number of contracts were concluded by the State Revenue Committee under the Government and the Ministry of Finance, 21 of them with “Sahakyanshin” CJSC. Twelve of these contracts provided for works involving the cladding of the center’s buildings and structures with travertine slabs 30 mm in thickness.

The certificates of completion recorded the execution of works covering a total area of 17,506.371 sq. m, with a total value of AMD 714 million 451 thousand, whereas the actual volume of the works performed amounted to 15,411.3 sq. m, which was 2,095.071 sq. m less than the amount stated in the certificates of completion.

AMD 85 million 497 thousand was paid from state funds for the 2,095.071 sq. m of works that were not actually performed, while, as a result of the amount paid in excess of the average market value for each square meter of the works actually performed, an additional AMD 89 million 83 thousand was paid to “Sahakyanshin” CJSC.

 

3.   An unlawful scheme for the alienation of property belonging to Brusov State University, valued at AMD 208 million 908 thousand

G.Kh., the former Chairman of the State Revenue Committee under the Government of the Republic of Armenia and former Minister of Finance, is accused of participating, in prior agreement with his son, A.Kh., as well as H.T. and other persons affiliated with them, in the process of unlawfully acquiring, through the abuse of official powers by public officials, the 451.1 sq. m. real estate located at 59, building 38/1, Pushkin Street, Yerevan, belonging to the “Yerevan Brusov State University of Languages and Social Sciences” SNCO, as well as the land plot constituting an inseparable part thereof.

The property was nominally acquired in the name of H.T., an individual affiliated with G.Kh. and A.Kh., for AMD 215 million 228 thousand, and subsequently, in 2017, was registered in the name of G.Kh.’s son, A.Kh., on the basis of a sham sale and purchase agreement for AMD 75 million. Prior to that, pursuant to a prior agreement reached between A.A., the former Minister of Education and Science of the Republic of Armenia, and G.G., Rector of the “Yerevan Brusov State University of Languages and Social Sciences” SNCO, a decision was made to artificially increase the salaries of the university’s lecturers by 25 percent (G.G. subsequently reduced the salaries of the SNCO’s teaching staff that had been increased by 25 percent and restored them to their previous levels), in order to create an additional financial burden for the SNCO. For the purpose of “restoring” the financial stability of the SNCO, G.G. applied to A.A., the Minister of Education and Science of the Republic of Armenia, following which, within the framework of a loan agreement concluded between the Ministry of Finance and the SNCO, the Ministry of Finance provided a budget loan in the amount of AMD 200 million. Meanwhile, according to the execution of the estimate, the amount of funds in the SNCO’s budget at the end of the year amounted to AMD 541 million 562 thousand.

Under the pretext of repaying the loan, but in fact with the aim of facilitating the “alienation” of the property located at 38/1 Pushkin Street, Yerevan, to G.Kh., the former Chairman of the State Revenue Committee and former Minister of Finance, and his son, A.Kh., the former Minister of Education and Science of the Republic of Armenia, A.A., instructed the Rector of the SNCO, G.G., to make a proposal to alienate the aforementioned real estate and use the proceeds to repay the loan obligations. Pursuant to A.A.’s instruction, on September 10, 2014, G.G. and Ar.A., disregarding the prohibition established by Part 4 of Article 45 of the Law of the Republic of Armenia “On Education” and also failing to take into account that 11 months still remained until the deadline for repayment of the loan funds and that the financial condition of the SNCO made it possible to repay its loan obligations, addressed a letter to A.A., the Minister of Education and Science of the Republic of Armenia, requesting that, for the purpose of rapidly stabilizing the university’s financial condition, the aforementioned property of the SNCO be alienated.

As a result, H.T., an individual affiliated with G.Kh. and A.Kh., acquired for AMD 215 million 228 thousand the 451.1 sq. m. real estate located at 59, building 38/1, Pushkin Street, Yerevan, which, in 2017, was registered in the name of G.Kh.’s son, A.Kh., on the basis of a sham sale and purchase agreement for AMD 75 million.

 

4.   Money laundering on an especially large scale by concealing the criminal origin of AMD 151 million 126 thousand

G.Kh., the former Chairman of the State Revenue Committee under the Government of the Republic of Armenia and former Minister of Finance, is accused of laundering AMD 151 million 126 thousand in prior agreement with V.S., Executive Director of “Hghkogh Hastots” (“Grinding Machine”) CJSC, and his relative R.G.

In particular, pursuant to the real estate sale and purchase agreement concluded on July 15, 2009, the complex of real estate located at 1/2 G. Nzhdeh Street, Gyumri, was acquired in the name of R.G. The complex included a 6.4199-hectare land plot, the main building located thereon with an area of 13,678.20 sq. m., a welding workshop with an area of 866.26 sq. m., two hangars with an area of 534.96 sq. m. each, an administrative section with an area of 292.91 sq. m., sheds measuring 18 sq. m. and 72 sq. m., respectively, as well as fences of various sizes. The total cadastral value of the aforementioned real estate amounted to AMD 122 million 876 thousand.

The real estate, title to which was registered in the names of R.G. and R.G.’s wife, Dz.G., was subsequently used several times as security for the obligations of affiliated third parties. Specifically, on December 12, 2013, the property was pledged to “HSBC Bank Armenia” CJSC as security for a USD 10 million loan obligation extended to H.Ye., Director of “Ucom” LLC, and A.Ye., Director of “IUnetforx” LLC.

On November 10, 2016, the same property was pledged to “Ardshinbank” CJSC as security for the AMD 4.8 billion obligation extended to A.Ye.

On December 12, 2016, the real estate was pledged again to “Ardshinbank” CJSC as security for the USD 28 million obligation extended to H.Ye., Director of “Ucom” LLC.

On October 27, 2023, the same real estate was pledged to “Ardshinbank” CJSC as security for the AMD 30 billion obligation of “Ucom” LLC.

As a result of the aforementioned actions, the property obtained through criminal means in an especially large amount, as well as the proceeds derived from its movement and circulation, were introduced into the legitimate economic circulation, given an appearance of legality, and their true nature, source of origin, and movement were concealed.

Thus, public criminal prosecution has been initiated against G.Kh. under Point 1 of Part 3 of Article 179, Part 1 of Article 314, Part 2 of Article 308 in conjunction with Article 38, Points 1 and 3 of Part 3 of Article 190, Point 1 of Part 3 of Article 190, Point 2 of Part 4 of Article 311, and Points 1 and 3 of Part 3 of Article 190 of the Criminal Code adopted on April 18, 2003.

On August 24, 2026, the results of the forensic medical panel examinations ordered on June 19, 2025, and June 22, 2026, concerning G.Kh., the former Chairman of the State Revenue Committee and former Minister of Finance, were received.

According to the results of the forensic medical panel examinations, it was established that G.Kh. had no need for surgical intervention, while the necessity for such intervention may currently be considered after G.Kh. undergoes an MRI examination (G.Kh. refused to undergo an MRI examination). If medically indicated, the surgery may be performed in specialized departments of medical institutions in the Republic of Armenia. Moreover, the necessary equipment, technical means, and specialists are currently available in the Republic of Armenia to perform such surgical interventions, and specialists capable of performing such procedures do in fact carry them out.

The conclusion of the panel examination also established that G.Kh. does not have any health conditions that could prevent him from participating in any procedural action within the criminal proceedings.

It should be recalled that, since 2020, cooperation had been initiated between the competent authorities of the Republic of Armenia and the United States of America with the aim of freezing a mansion located in the United States belonging to G.Kh., the former Minister of Finance, and his family, and subsequently returning to the Republic of Armenia the funds received from the sale of the property.

As a result of this cooperation, in May 2022, the U.S. side initiated proceedings for the forfeiture of the mansion by filing a civil claim with the court.

On June 14, 2024, Gr.Kh. and A.Kh. submitted a request to the U.S. District Court to enter into a settlement.

As a result, a settlement agreement was reached between the U.S. Department of Justice and Gr.Kh. and A.Kh., which was approved by the court’s decision of June 25, 2024, and published on July 5.

Pursuant to the settlement agreement, on January 7, 2025, the mansion was sold at auction for USD 36 million, 85 percent of which was transferred to the U.S. Government and 15 percent to the aforementioned family.

The settlement agreement states the U.S. Department of Justice’s intention to recommend that the U.S. Government return to the Republic of Armenia the remaining amount of the 85 percent share after deducting the expenses incurred by the U.S. Government.

It should also be recalled that the Anti-Corruption Criminal Court is currently hearing the criminal case concerning G.Kh.’s abuse of official powers, embezzlement on an especially large scale, complicity in money laundering, and acceptance of a bribe on an especially large scale, while the criminal case concerning G.Kh.’s son, A.Kh., his nephew, Ar.Kh., S.A., General Director of “Multi Group Concern,” and A.P., an employee of one of the banks, is being heard by the same court before a different judge. In the aforementioned case referred to the court, public criminal prosecutions have been initiated against the above-mentioned persons for aiding and abetting the abuse of official powers, aiding and abetting the misappropriation of property on an especially large scale through the use of official position, aiding and abetting the acceptance of a bribe on an especially large scale, as well as for money laundering. In this case, the prosecutor’s motions were also granted on July 2, 2026. Detention was imposed as a preventive measure against A.Kh. and Ar.Kh. The AMD 200 million bail imposed on them will be transferred to the state budget.

In addition to the criminal proceedings, within the framework of claims for the confiscation of property of illicit origin being heard by the Anti-Corruption Court, the former Minister of Finance of the Republic of Armenia, G.Kh., and persons affiliated with him, including his sons, are required to forfeit:

Ø  193 immovable properties, including, among others, 46 apartments in the Kentron administrative district and 89 immovable properties in Kotayk Province;

Ø  ownership interests in 29 legal entities, including “MEGASPORT” LLC and “MEGA FOOD” LLC;

Ø  14 movable properties;

Ø  bonds acquired in the amount of approximately USD 1 billion 451 million;

Ø  a deposit of approximately USD 147 thousand;

Ø  rights to claims under loan agreements in the amounts of approximately USD 23 million 81 thousand, AMD 409 million 806 thousand, and EUR 9,750;

Ø  approximately AMD 17 billion 761.5 million.

 

Notice: A person charged with any crime shall be presumed innocent until proved guilty in the manner prescribed by the RA Criminal Procedure Code — by the judgment came into legal force.