In the past few months, my attorneys have repeatedly presented facts to the prosecutors generals office and the State Revenue Committee (SRC) investigators that the bankruptcy trustee, Hrant Gambaryan and court judges are in mutual agreement to fraudulently foreclose company's remaining assets and deliver them to VMG Group, it’s unofficial owner Vlad Mangasaryan.

Despite the fact that constant messages and facts were given about this, SRC and prosecutors generals office neglected this matter and did nothing to stop the crime. Worse yet, under the criminal investigation, on May 21, 2011, bankruptcy trustee Hrant Gambaryan and Kentron judge Karine Petrosyan came to agreement to foreclose on Arin Capital LLC, where $1,200,000 worth of assets were transferred to VGM Group, Vlad Mangasaryan.

Hrant Gambaryan received $48,000 commission from the VMG Group, as allowed by law. He was aware of company’s deliberate bankruptcy situation and did everything in his power to defraud the system and “help” the group in their crime.

In March of this year I have mailed several official letters to President Serzh Sargsyan, Prosecutor General Agvan Hovsepyan, Police chief Alik Sargsyan, Minister of Diaspora Hranush Hakobyan, Ambassador of Armenia in Los Angeles Grigor Hovhannisyan, and later in May to Minster of Justice Hrair Tovmasyan about group's criminal activities in detail, asking for their help. No response, no help, no attention was paid to this matter as this issue was not a concern for them. A simple note was sent that a criminal investigation is in process and they have no right to interfere.

Since the opening of the investigation, my attorneys have supplied key information and documentation to the investigation, facts about organized crime and how it's done. The investigation had every evidence of ongoing crime and could make arrests, but nothing was done to prevent further crime and theft. The investigation is being conducted "behind closed doors" and obviously being covered up. In the past few months, none of the group members have yet been questioned.

The SRC makes a look line the investigation is ongoing, but in reality nothing is being done because the group has good ties with high rank officials, including SRC's officials and this criminal case can lead to many arrests, if opens up. One of the reasons the SRC does not want this case to surface is because one of their taxation supervisors has made some "strange steps" collecting unpaid tax money from the company.

This is the issue: In July of 2010, the SRC's collection supervisor makes an "agreement" with Vlad Mangasaryan “allowing” Vlad to deliver company assets to others, hopping to get 120,000,000 dram (approx. US $328,000) tax from him on behalf of the company. On September of 2010 Vlad Mangasaryan and PEK employees (they were present at local notary office of Aida Abrahamyan, during the transaction) grant numbers of properties to Vlad’s friends and “buyers” (one to his brother, Ruben Mangasaryan, unit # 22) but at the end, Vlad never pays the 120,000,000 dram. Per article 30 of the law, the PEK inspector was supposed to immediately place a lien on the assets to freeze it. Instead, Vlad was given the green light to grant company assets to others. Why? What was the real agreement between them? This is one of the reasons that the SRC is not making arrests, because if Vlad is arrested, he can talk.

By the way there is another criminal investigation for Lusine Gulkhasyan’s case, a buyer who paid $122,000 to the company for unit # 22 and that money has been deposited into company's account. Later, in September of 2010, with the presence of the SRC's employees, that property has been granted to Vlad Mangasaryan's brother, Ruben Mangasaryan.

There has been number of serious "mistakes" by the SRC. If the SRC inspector assigned to this bankruptcy case did his job right, company assets would not have been stolen. In August of 2010, the SRC inspectors "failed" to discover intentional bankruptcy situation and knowingly and deliberately allowed company's assets to be granted to Vlad Mangasaryan and his group. Massive documentation has been forwarded to the criminal investigator about this issue and they knew about this, but nothing was done, again.

The criminal investigation has been opened to mislead and redirect the SRC's inspectors illegal decisions, as well to establish a case against me, which failed. I have acted in good fate and all my business transactions and agreements are clean. That's not the case with the "group", who's hiding, finding support from high rank officials for cover up. Which will not work! They left too much “mess” out there…

PEK and other related departments are avoiding to charge anyone because the truth will surface. The organized crime and staged bankruptcy continues and none of the departments have made any efforts to stop the fraud. The cover up continues as high rank officials are still on top of this.

Edmond Khudyan, Glendale, CA July 21, 2011