The Court examined the sources of evidence and found out that six employees of the Sevan Branch of the “VTB-Armenia Bank” CJSC were guilty of allocating loans from 2007 to 2009 without proper preparation of documentation.

During the preliminary investigation it was stated that K. Ghasaboghlyan had worked as a loan officer and economist of the debit transaction group of the branch and laundered 44 215 000 drams by forming false loans and abusing the trust of the money borrowers.

Then, K. Ghasaboghlyan had allocated false loans for the purchase of household appliances in the names of different citizens, transferred the sum of money to the account of “Astghik” Ltd electronic equipment and household appliances store and then prepared documents as to which the borrowers got the household appliances and cashed 10 488 439,7 drams.

A. Tovmasyan worked in the Gegharkunik sub-division of the Compulsory Enforcement Office of the RA Ministry of Justice and until May 2009 had a part time job in the “Astghik” Ltd. as a salesperson. He came to a prior agreement with K. Ghasaboghlyan and the manager of the store R. Khachatryan (who died) and prepared false documents. They allocated false loans for the purchase of household appliances in the names of different citizens and A. Tovmasyan legalized 5 416 398 drams.

N. Navasardyan the chief accountant of the same branch of “VTB-Armenia Bank” CJSC helped K. Ghasaboghlyan to squander the money in large amount transferred to the account of “Astghik” Ltd without preparing proper documents. The head of the Service Department of the Sevan Branch of the “VTB-Armenia Bank” CJSC S. Asatryan, Deputy Manager of the Branch A. Mkrtchyan and the chief specialist of the Service Department, teller V. Asatryan gave the amount of the loans in the names of more than a dozen citizens to the loan officer of the same branch K. Ghasaboghlyan and helped him to squander the bank money.

Besides, citizen P. Manukyan abused his neighbor’s trust, took the latter’s passport and allocated a false loan for the purchase of household appliances in the Sevan Branch of the “VTB-Armenia Bank” CJSC and squandered the mentioned money.

Two persons were sentenced for legalizing illegally obtained income, four persons for committing squandering and one for swindling.

On 11 October, 2011, the Court of First Instance of Gegharkunik region sentenced all the defendants to imprisonment.
Thus, K. Ghasaboghlyan was found guilty according to the RA Criminal Code Articles 178, part 2, point 2, 179, part 3, point 1 and 190 part 3, point 1 and was sentenced to 12 years in prison with the confiscation of illegal obtained property in the amount of 10 488 439,7 drams.

A. Tovmasyan was found guilty according to the RA Criminal Code Articles 178, part 2, point 2, 179, part 3, point 1 and 190 part 2, points 1 and 2 and was sentenced to five-and- a half years in prison with the confiscation of illegal obtained property in the amount of 5 416 398 drams.

A. Arakelyan was found guilty according to the RA Criminal Code Article 214, part 2 and was sentenced to three-and-a half years in prison.

N. Navasardyan, S. Asatryan, A. Mkrtchyan and V. Asatryan were found guilty according to the RA Criminal Code Article 38-179, part 2, point 3 and were sentenced to three years in prison and P. Manukyan was found guilty according to the RA Criminal Code Article 178, part 2, point 2 and was sentenced to three years in prison. They were released from punishment based on the subpoint 1 of the point 1 of the RA National Assembly’s decision “On announcing amnesty” adopted on June 19, 2009.

The Court also upheld the claim brought by the “VTB-Armenia Bank” CJSC to require the damage caused to the bank.

A. Tovmasyan and A. Arakelyan applied to the RA Court of Criminal Appeals with the request to review the decision made by the Court of First Instance of Gegharkunik region.