Principal conductor of the Malta Philharmonic Orchestra Sergey Smbatyan and his father have been arrested in connection to large-scale fraud in Armenia.

Massis Post, an Armenian news portal, revealed that Sergey Smbatyan, and his father Armen Smbatyan, the former ambassador of Armenia to Israel, were arrested on Saturday over real estate fraud that allegedly cost the state one billion Armenian dram, roughly 2.4 million euro, and that a 300-square-meter square plot of Yerevan Tchaikovsky Music School in the capital was stolen.

In 2012, the government granted a valuable central area to the Sochocenter company, allegedly owned by the Smbatyan family, to construct a multi-functional complex called “Book World”.

However, the company instead initiated the construction of a 17-story business centre.

Armen Smbatyan reportedly convinced a relative, Avag Smbatyan, to establish the company on behalf of Sergey Smbatyan to keep his son’s name separate from the business.

Other co-founders include a former Minister of Culture, Hasmik Poghosyan, who is currently under investigation. Poghosyan allegedly signed contracts with Sokhocentr, intentionally leaving out the primary investment obligation to construct the “Book World”.

This resulted in Sokhocentr registering ownership rights for the land without fulfilling the stated obligation, causing considerable property damage to the state. The Smbatyans and Poghosyan are facing legal scrutiny, while efforts are ongoing to locate co-founder Arman Petrosyan.

Cover image: Massis Post 

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