The Honourable Mr. John A. Heffern, US Ambassador to Armenia 

Honourable Ambassador Heffern,

My name is Edmond Khudyan, a US citizen and the president of Arin Capital & Investment Corp., a real estate investment-development firm in Glendale CA. I am also the founder of Arin Capital & Investment LLC, a real estate development co. in Yerevan, Armenia, development project known as Mashtotc 33. I am writing to You hopping that I can bring to your attention and get your diplomatic mission’s appropriate involvement in an almost $8,500,000 (up to date) embezzlement case which I filed in November of 2010 with RA State Revenue Committee (PEK). This organized set of criminal activity in my company has resulted in missing of millions of dollars, and defrauding of the RA tax agency by 2 shareholders of the company.  

A few months later, in March of 2011, I filed several complaints with the RA President and other judicial bodies of the government regarding the embezzlement of $4,500,000 from the company. A copy of that complaint was also sent to the former U.S. Ambassador, Honourable Marie Yovanovitch, and it can be viewed on the web, at Hetq Online. My complaint described all the illegal activities of Vladislav Mangasaryan and Ghevond Ghaloumyan, 2 shareholders/partners in Arin Capital & Investment LLC, and company director Edward Yesayan. Based on a set of preliminary findings, a criminal case #83159711 was initiated on May 3, 2011.

Since May 3, 2011, another $4,000,000 worth of assets were swindled from my company and this was done with the direct consent of officials from the Prosecutor’s Office and the State Revenue Commission. In the fall of 2011, it became clear to me that the same group, through fabricated judicial acts, wanted to seize an additional $2,000,000 worth of assets (properties) and I immediately notified the appropriate representatives of agencies dealing with criminal case so a freeze could be placed on the property (equivalent of a Lis Pendens, in the states), until a judicial conclusion is reached in this case. However, those authorities failed to take such measures,  baselessly arguing that there was no victim or accused, and thus, they could not place a freeze.

In May of 2012, to avoid a similar situation, we met with assistant General Prosecutor Mr. Mnacakan Sargsyan and Department Director Grigor Hovhannisyan where we obtained their verbal agreement that they would proceed with the “freeze”, if we officially file such a request.  However, after filing the request, again, no measures were taken and additional $2,000,000 worth of real estate was seized. No words could express our frustration. This underhanded act – or better said “lack of action” – once again proved complete and intentional failure of the abovementioned RA governmental agencies and officials, putting corruption “front and center” as the core reason behind their actions.

As the evidence of the crime was presented to State Revenue Committee Lead Inspector Tigran Harutyunyan, prosecutor Lernik Hovhannisyan, department director Grigor Hovhannisyan, assistant to the prosecutor general Mnatsakan Sargsyan and prosecutor general Aghvan Hovespyan, all of whom failed to recognize me as a victim, and as such prevented me from defending my interests. My civil rights have been violated. Under the sponsorship of the abovementioned officials, the criminals were permitted to continue seize properties. Yes, the crime is being deliberately buried and justice is not being served. Criminals go unpunished and continue to conduct sales of the units in the building, with no regard for the company’s rightful owner’s interests. This is “corruption reigning supreme” in Armenia.

We are dealing with a well organized criminal group which knows how to commit crime and steal, operating thought high ranking officials, and their family members, who have the power to influence and obtain favourable court decisions and avoid prosecution. The Prosecutor’s office and State Revenue Committee officials are well aware of this group’s identity, their criminal profile, their criminal activities causing the fraudulent unpaid taxes and the crime committed, but they are unwilling to do anything about it. The prosecutor’s office has sheltered this group and allowed them to seize the few last properties belonging to Diaspora Armenians. 

The U.S. Embassy staff members have periodically been present at my trials. They too have certain details at their disposal. I would kindly ask that you instruct your staff members to follow the conduct of RA legal agencies and the manner of their operations. Please also be informed that steps are being taken to relocate this trial to the United States and file a legal suit against the Republic of Armenia according to the ICSID Convention (International Centre for Settlement of Investment Disputes), UNICITIRAL arbitration rules, the USA/RA Investment Agreement, and/or the “RA Law on Compensation for Losses Incurred by Foreign Investors”. Considering that the Armenian judicial system does not seem to be working, and I have been left powerless to defend myself and my interests, I hope to have U.S. Embassy’s active follow-up and oversight of my ongoing judicial struggle against all parties involved, including the RA agencies and officials. A court trial about this case is scheduled for Monday, Oct 29^th at 11am and I would appreciate if Embassy’s staff members can be present.  

Information, articles and press conferences about this case can be viewed at arincapital.com 

Respectfully,

Edmond Khudyan

USA