APPEAL CRIMINAL COURT REVERSES VERDICT OF "NOT GUILTY" IN CASE OF "ROYAL ARMENIA" COMPANY

Noyan Tapan
Nov 30, 2007

YEREVAN, NOVEMBER 30, NOYAN TAPAN. The RA Criminal Appeal Court
(chairman – Judge Surik Ghazarian) on November 29 reversed the verdict
of "not guilty" returned on the heads of Royal Armenia company. The
appeal court came to the conclusion that the motivations in the July
16 verdict of "not guilty" returned by the court of first instannce
of Yerevan’s Kentron and Nork-Marash communities are ungrounded and
not based on the data of the case, and the criminal actions of the
defendants are completely proven and correctly qualified.

The appeal court decided to find the co-owner of the company Gagik
Hakobian guilty by the RA Criminal Code’s Article 178 Part 3 points
1 and 2 – fraud, Article 215 Part 1 – smuggling, Article 205 Part 1 –
tax evasion, and Article 325 Part 2 – forgery of invoices and sentenced
him to 6 years’ imprisonment. G. Hakobian has to serve the remaining
term of 4 years 2 months 25 days.

The deputy director of the company Aram Ghazarian was found guilty
by the RA Criminal Code’s Articles 215 and 205 Parts 1, Article
325 Part 2 and sentenced to 2 years’ improsonment. The decision of
the RA National Assembly to declare amnesty on the occasion of the
15th anniversray of Armenia’s independence was used with respect to
A. Ghazarian, he was revileved from his main punishment – imprisonment.

455,717,900 drams will be transferred from the economy of G. Hakobian
and A. Ghazarian to the state budget as compenstion of the damage done to
the state by committing the crime. By the court decision, G. Hakobian
has to pay a sum in drams equivalent to 555,825.5 USD (at the moment
of confiscation) to Federal Investment organization as compenstion
of the damage done to the aggrived party by committing the crime.

The court decided to acquit G. Hakobian and A. Ghazarian of money
laundering (Article 190 of the RA Criminal Code), A. Ghazarian was
also acquitted of fraud.

The defence lawyers intend to dispute the decision of the appeal
court in a higher court.