Armenian Court Orders Opposition Leader Gagik Tsarukyan Detained for Two Months in Fraud and Money Laundering Case

A court in Armenia has ordered opposition leader and businessman Gagik Tsarukyan held in pretrial detention for two months on charges of large-scale fraud and money laundering, escalating a case that has quickly become one of the country’s most politically charged legal battles.

The ruling followed a day-long operation at Tsarukyan’s residence, where masked National Security Service officers carried out a search that lasted nearly 12 hours before taking him into custody. Investigators later charged the 69-year-old with fraud and money laundering before transferring him to court in handcuffs.

Tsarukyan, leader of the Prosperous Armenia Party, has denied all wrongdoing. His attorneys say the accusations are unfounded and have pledged to appeal the detention order.

“The prosecution’s case has completely fallen apart,” defense attorney Emin Khachatryan told reporters after the hearing. “There is no evidence that a crime was committed. Mr. Tsarukyan should have been recognized as the victim, not the accused.”

According to Armenia’s Investigative Committee, Tsarukyan led a criminal group that allegedly used forged documents and false representations while promoting logistics projects between Armenia and Iran. Investigators claim the scheme defrauded several Iranian companies of 52 vehicles, pieces of equipment, and commercial goods, causing an estimated $22 million in damages.

Authorities also accuse him of laundering the proceeds by channeling the assets through companies under his control to make them appear legally obtained.

In a separate allegation, investigators say Tsarukyan worked with a businessman involved in fuel imports to fraudulently obtain about $934,000 from an Iranian citizen.

Tsarukyan rejects both accusations, calling the case fabricated.

Defense attorney Yerem Sargsyan argued that prosecutors failed to substantiate the charges during the closed-door court hearing. Because the proceedings were not open to the public, journalists were unable to review the evidence presented by investigators, and prosecutors declined to comment afterward.

Sargsyan also pointed to a ruling issued by an Iranian court, which he said concluded that the dispute involved ordinary commercial relations rather than fraud.

“An Iranian court issued a final ruling confirming there was no fraud,” Sargsyan said. “Yet Armenian investigators insist the same facts amount to a criminal offense. This case moved with unusual speed while other complaints remain unresolved. It was clear they were looking for grounds to detain Tsarukyan.”

After the detention, the Investigative Committee released video from the operation. The footage shows dozens of masked National Security Service officers entering Tsarukyan’s residence, forcing several men to the ground before surrounding Tsarukyan, pulling him by the leg, forcing him onto the floor, and later escorting him away in handcuffs.

The video’s release intensified criticism from the opposition, which argues the case is politically motivated.

Several opposition parties, including the parliamentary Hayastan Alliance and the Strong Armenia Alliance, condemned the criminal proceedings and the searches conducted at companies linked to Tsarukyan.

In a statement, the Hayastan Alliance said the government was attempting to conceal what it described as a crisis of legitimacy by eliminating political opponents.

The Strong Armenia Alliance called the case another example of political persecution, arguing that using law enforcement against opposition figures undermines both Armenia’s democratic institutions and its investment climate.

Tsarukyan was among Prime Minister Nikol Pashinyan’s most prominent political rivals during Armenia’s recent parliamentary election campaign. In the weeks leading up to the vote, Pashinyan publicly threatened to imprison Tsarukyan, former President Robert Kocharyan, and businessman Samvel Karapetyan. He also said Tsarukyan’s residence would be converted into a nursing home.

Pashinyan had not publicly commented on the court’s decision as of publication.

The case is expected to deepen political tensions in Armenia, where opposition parties have repeatedly accused the government of using the justice system to pressure its critics.

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