Former Economy Minister Vahan Kerobyan Arrested in Large-Scale Money Laundering Case

Former Minister of Economy Vahan Kerobyan has been arrested in connection with a major money-laundering and corruption case, the Investigative Committee of Armenia confirmed to The Armenian Report. His brother, Avetik Kerobyan, said that law enforcement officers searched his brother’s apartment but did not inform the family which agency carried out the arrest or under which specific case it was made.

According to the Investigative Committee, the arrest of the former minister is part of an extensive investigation into large-scale money laundering and illegal land seizures carried out by an organized criminal group between 2008 and 2014.

The investigation revealed that the group, led by the owner of a wine and brandy factory identified as H.M., and supported by officials from the Cadastre Committee, illegally took control of 73.8 hectares of land that belonged to the Yerevan community. Using forged ownership documents, they registered 40-hectare, 19.3-hectare, and 14.5-hectare plots under companies and individuals linked to their organization.

The illegally obtained land was later mortgaged in commercial banks, allowing the group to secure loans of more than 10 million U.S. dollars. Investigators say the members were fully aware that the properties were of criminal origin and used a series of fake civil transactions to launder the illicit funds.

The investigation has identified 12 individuals connected to the criminal organization. More than ten searches have been carried out, and items of major importance to the case were seized.

Criminal prosecution has been launched under multiple articles of the Armenian Criminal Code, including participation in a criminal organization, large-scale money laundering, fraud, forgery, and abuse of official authority.

• Six individuals are charged with participation in a criminal organization and money laundering.

• Four others face additional forgery charges.

• One suspect is accused of leading the organization and committing large-scale fraud.

• Another is charged with abuse of official authority and official forgery.

In total, 12 arrest warrants have been issued, and seven suspects are currently in custody. The preliminary investigation is ongoing.

Kerobyan, who served as Minister of Economy until February 2024, was previously charged with abuse of official authority. On February 16, a court placed him under house arrest for four months, which ended in June 2024.

In an earlier stage of the same investigation, the Deputy Minister of Economy Ani Ispiryan, Synergy company director Ashot Hovhannisyan, and several others were arrested over the alleged manipulation of a public tender. According to investigators, ministry officials intentionally disqualified a lower-priced bidder, Harmonia, in favor of Synergy, which had submitted a higher bid.

Although charges against several of those defendants were later dropped, Kerobyan and Hovhannisyan remained under prosecution.

Now, with the former minister’s new arrest, investigators believe the case may be part of a broader scheme involving state officials, business leaders, and organized criminal networks responsible for embezzlement and money laundering on a large scale.

The Investigative Committee has not released further details, stating only that the pre-trial investigation continues.

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