To the President of Armenia – Mr. Serzh Sargsyan

Dear Mr. President,

In 2003, I visited Armenia sponsoring Pan Armenian games of 2003. There, I got introduced to a "reputable person" who invited me to do some safe investments.

Considering the person's reputation and promises that I will not be a victim as many others, I accepted the offer and I started a project on Mashtoc 33 with another person, Vladislav Mangasaryan, as my partner and the contractor.

In 2005, I established Arin Capital & Investment LLC and on November 11, 2007, the project (at Mashtoc 33, the 9.167,7 square meter 11 story unfinished building/project on 1.923,6 s.m. land) was transferred to the company's asset and I distributed my 100% shares into 61.1% myself, to Vladislav Mangasaryan's appointed person (his son in law) Haykaz Sargsyan 21.3%, and again Vladislav Mangasaryan's appointed person Gevond Galumyan 17.6%.

Based on our contract Vladislav Mangasaryan was responsible for completing construction and Gevond Galumyan was responsible for taxation, accounting, other city related issues and successful completion of the project. The director, Eduard Yesayan, was appointed by me, who was my childhood friend. Eduard Yesayan was supposed to coordinate every detail with me and to obtain my approval for each transaction. His duty was to protect all shareholder equally and he was given a power of attorney to sign on my behalf as I was living in the US and business could not be conducted without me.

By the end of 2008 things have started to look suspicious. I would find out things from others and I've come to realization that Vladislav Mangasaryan, Gevond Galumyan and Eduard Yesayan are in secret alliance against me. In the beginning of 2009, I hired Ameria bank's legal and accounting group to conduct audit, obtain documents and conduct due diligence.

During multiple visits, appointments and efforts to bring partners to cooperate with my attorney and audit (Ameria Bank) was unsuccessful as they refused to allow "an outsider" to find out the trurth. Each time I returned with promises with misleading agreements but nothing would change. Not even once, they came to a meeting or cooperated with the audit as they were "hurt and insulted" by the audit.

In fall of 2009, Vladislav Mangasaryan and Gevond Galumyan are hinting that there are major losses and the financial crises could force our company to go bankrupt. That we need money otherwise bank will foreclose on the building and I personally would be responsible for everything.

They directly and indirectly forced me to bring more money. While I was trying to find solution to this problem, I started receiving calls from buyers all over the world that Vladislav Mangasaryan is telling everyone that I stole lot of money from the company and I won't ever come back to Armenia anymore. This rumor was devastating, very devastating.

In January of 2010, I visited Armenia to calm everyone down, confront partners and to show and tell everyone that I am a reputable person and I have done nothing wrong. Upon arriving in Yerevan, first call was made to V. Mangasaryan and he started apologizing, changing stories and telling me how sorry he was and that this mistake was Gevonds idea and etc. Partners simply requested more money! Not knowing what really is happening, they convinced me to bring in more money.

I agreed and upon my return to US additional buyers/investments were made, and funds got transferred directly to the company's account. Later, I found out that was another trick by them, those purchases, buyers are being sued by them and a lien has been placed on their property attempting to steal them as well. Now those investors are worried too. It is now that I'm realizing why the rumor was made, how thoughtful and well connected and powerful they are, although they must be stupid to think they could get away with this.

In the summer of 2010 I finally realized that "the group" is stealing everything and there is no money. My worst fear was coming true. It was already a fact, that my "friend", Eduard Yesayan and others were stealing and there was nothing I could do. I was only able to seize the power of attorney from him but nothing stopped them, they were still granting properties to their family members, friends as they knew how to play me and the system. They fraudulently fixed documents and accounting books, forged signatures and shareholders meeting minutes. In a result, several thousands of square meters of properties have been stolen.

They did not even paid overdue taxes and a lien has been placed on the company freezing remaining assets. And that's not all, yet. The actual owner of V.M.G. Group Vladislav Mangasaryan and "our director", Eduard Yesayan, have fixed documents to create massive loans against Arin Capital & Investment LLC so V.M.G Group could foresefully reposess remaining properties. Those properties are owned by list of innocent buyers from around the world. They are fully paid for, but their names have been "removed" from accounting so properties belonging to them can be pocketed later.

In August of 2010, I attempted to take them to court and they immediately took the company to bankruptcy. This bankruptcy is beneficial to V. Mangasaryan, G. Galumyan and E. Yesayan as it eliminates all kind of law suits against them until the bankruptcy is finalized. During the bankruptcy, they use their connections to repossess remaining properties. This is well organized by their attorney and many other individuals who have helped them to come this far. Despite my efforts to remove "staged" bankruptcy, it is still ongoing.

Mr. Hrant Gambaryan has been appointed as the bankruptcy trustee and V. Mangasaryan has had a serious effect on him. Based on the facts, he is doing everything to V. Mangasaryan favor and they must be in mutual agreement. As of today, he has not made any effort to bring back any stolen asset and worst yet, he simply "did not notice" the most recent biggest transaction where V. Mangasaryan sold $1,250,000-$1,500,000 worth of building and pocketed the money. Mr. Gambaryan's approach to this situation is extremely worrying.

When I learned that V. Mangasaryan is bankrupt himself, I was seriously shocked. His bankruptcy trustee Arsen Chitchyan is appear to be another "business associate" of his. I have no doubts they would have some criminal alliance together and V. Mangasaryan bankruptcy was nicely "covered up".

In October 2010 I made a call to the reputable person from 2003 for help. He suggested to return back to Armenia and conduct an internal audit and clearly stated that the thieve(s) will be punished. I agreed and flew back to Armenia. Partners, director had no choice but to accept the audit.

The "reputable person" appointed the audit and after 2.5 months of audit results were presented to us. Result: Vladislav Mangasaryan, Gevond Galumyan, Eduard Yesayan pocketed more than $4,500,000. As of today, the "reputable person" refuses to do anything about this but I have no doubts that if I were the thieve, I would be severely punished and dragged back to Armenia to pay for my mistake.

Because Vladislav Mangasaryan and Gevond Galumyan have "friends" in the system, I am not able to fight with this alone. Therefor I have submitted a written complaint to the president of taxation revenue and collection department (ՀՀ ԿԱ ՊԵԿ) Mr. G. Khachatryan for help. At this point of time, I am very satisfied with his professionalism and response in his department and work and I am hopeful that this will continue until justice is served.

Vladislav Mangasaryan and Gevond Galumyan have corrupt connections in the court system, kadastr, tax collection agencies and I am unable to fight with them equally. Myself and many Armenians outside Armenia are asking for help. Since 2003, I have been a witness of many positive changes in Armenia and still belive in the system. Many buyers purchasing "homes" from this building are from Diaspora believing in me and there are very worried. We need Your help.

Sir, I am an honest businessman who brought many investors to help Armenia but in return I found myself in a horrible situation. I did this investment because I love Armenia, and I wanted to be proud about it, but instead, my family and I have been suffering from this for the past 6 years and there is no end to it. I will not spare any effort and money until justice is served. I am prepared to hire a consultant to bring this issue to USA officials but deep down I think that the system has changed and I will find justice.

Respectfully,

Edmond Khudyan A Proud Citizen of United States of America

1 American Avenue
Yerevan 0082, Republic of Armenia
Telephone: 464-700 Fax: 464-742
[email protected]

Copies sent to:
Ministry of Diaspora – Hranush Hakobyan,
Prosecutor General – Aghvan Hovsepyan,
Chief of Police – Alik Sargsyan, Marie L. Yovanovitch – Ambassador of the United States of America to Armenia