Comments on: Defrauded http://www.blogrel.com/2004/11/30/defrauded/ A blog about Armenia: business, politics, the future and good lavash Tue, 07 Oct 2008 00:55:08 +0000 http://wordpress.org/?v=1.5 by: Hakob Gevorgian http://www.blogrel.com/2004/11/30/defrauded/#comment-1394 Tue, 30 Nov 2004 17:52:02 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1394 What kind of a crook is that guy... I'm shocked by hearing this story... How can you betray such a good people who have helped you to have children... This is just very wrong and I think that person needs to be judged by "unwritten" laws of Armenia, unless some one can come up with a better method. What kind of a crook is that guy… I’m shocked by hearing this story… How can you betray such a good people who have helped you to have children… This is just very wrong and I think that person needs to be judged by “unwritten” laws of Armenia, unless some one can come up with a better method.

]]> by: Onnik Krikorian http://www.blogrel.com/2004/11/30/defrauded/#comment-1395 Wed, 01 Dec 2004 01:16:28 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1395 Unfortunately, the "unwritten" laws of Armenia seem to be supporting him... Unfortunately, the “unwritten” laws of Armenia seem to be supporting him…

]]> by: Hakob Gevorgian http://www.blogrel.com/2004/11/30/defrauded/#comment-1396 Wed, 01 Dec 2004 07:58:18 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1396 Onik, I was being sarcastic about the "unwritten laws". I hope that this matter will take some action that will support constitutional amendments. We really need to treat nicely our felow armenians who want to support our country. Onik, I was being sarcastic about the “unwritten laws”. I hope that this matter will take some action that will support constitutional amendments. We really need to treat nicely our felow armenians who want to support our country.

]]> by: Matt http://www.blogrel.com/2004/11/30/defrauded/#comment-1397 Wed, 01 Dec 2004 09:52:48 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1397 And not just our fellow Armenians! There should be proper rule of law to protect anyone who wants to invest in Armenia. Without it, investment will be limited to companies large enough to have government influence and high-risk takers. And not just our fellow Armenians! There should be proper rule of law to protect anyone who wants to invest in Armenia. Without it, investment will be limited to companies large enough to have government influence and high-risk takers.

]]> by: George http://www.blogrel.com/2004/11/30/defrauded/#comment-1398 Wed, 01 Dec 2004 14:34:00 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1398 Well, I feel sad about the story, as Najarians will leave Armenia. Nevertheless, as a lawyer, I must say that they shot themselves in the foot. First, they should have chosen their trust more carefully - the person who defrauded them had their power-of-attorney. Second, that is clearly a civil case; instead of going to Prosecutor General (which handles criminal matters) and writing to the President, they could have hired a good lawyer and filed a case with the local court. When a business partner defrauds you in New York City, you take him/her to court - you don't go to the DA office or write to Governor Pataki to complain. Moral of the story: 1) place your confidence sparingly; 2) know your rights and proper venues for enforcing them. Well, I feel sad about the story, as Najarians will leave Armenia. Nevertheless, as a lawyer, I must say that they shot themselves in the foot. First, they should have chosen their trust more carefully - the person who defrauded them had their power-of-attorney. Second, that is clearly a civil case; instead of going to Prosecutor General (which handles criminal matters) and writing to the President, they could have hired a good lawyer and filed a case with the local court. When a business partner defrauds you in New York City, you take him/her to court - you don’t go to the DA office or write to Governor Pataki to complain.

Moral of the story: 1) place your confidence sparingly; 2) know your rights and proper venues for enforcing them.

]]> by: Onnik Krikorian http://www.blogrel.com/2004/11/30/defrauded/#comment-1399 Thu, 02 Dec 2004 02:14:45 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1399 I think George makes a good point here and it says a lot about the nature of Armenia and how things are done. Virtually everything is decided NOT according to the law but rather by who you know in Government, and the higher the position the better. It also reminds me about something once said to me a few years ago by a Diasporan doing humanitarian aid work here (although based in New York he would travel here frequently) when we touched upon the matter of investments. That is, most -- if not all -- of the big Diasporan (and I daresay non-Diasporan but especially Diasporan) investors work through either the President's Office (in the form of the President himself) or the MFA (in the form of Oskanian and / or Salpi Ghazarian). This really isn't the way things should be done and says a lot about the investment climate. I think George makes a good point here and it says a lot about the nature of Armenia and how things are done. Virtually everything is decided NOT according to the law but rather by who you know in Government, and the higher the position the better.

It also reminds me about something once said to me a few years ago by a Diasporan doing humanitarian aid work here (although based in New York he would travel here frequently) when we touched upon the matter of investments.

That is, most — if not all — of the big Diasporan (and I daresay non-Diasporan but especially Diasporan) investors work through either the President’s Office (in the form of the President himself) or the MFA (in the form of Oskanian and / or Salpi Ghazarian). This really isn’t the way things should be done and says a lot about the investment climate.

]]> by: Hakob Gevorgian http://www.blogrel.com/2004/11/30/defrauded/#comment-1400 Thu, 02 Dec 2004 11:01:03 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1400 Well, I think if Najarian has a chance to win this case. There could be a strong evidence in this case based on the following: "In 1996, after a year of prodding George to finance a business venture, they opened a photo shop as partners - he did the work and [George paid for everything]. He also introduced George to various people with other business propositions. One introduction led to our purchase of two parcels of land in the Ethnographic Center at Tzorakugh with spectacular views of Ararat. Throughout this time this 'friend' presented himself to us as an honest person, thankful for the assistance we had given to him and wanting to help George in whatever way he could." If Najarian shows his bank statements, then he may use it as evidence that he basically have paid everything for the business. Anyway, I'm not an attorney, thus this is just my opinion... Well, I think if Najarian has a chance to win this case. There could be a strong evidence in this case based on the following:
“In 1996, after a year of prodding George to finance a business venture, they opened a photo shop as partners - he did the work and [George paid for everything]. He also introduced George to various people with other business
propositions. One introduction led to our purchase of two parcels of land in the Ethnographic Center at Tzorakugh with spectacular views of Ararat. Throughout this time this ‘friend’ presented himself to us as an honest person, thankful for the assistance we had given to him and wanting to help George in whatever way he could.”

If Najarian shows his bank statements, then he may use it as evidence that he basically have paid everything for the business.

Anyway, I’m not an attorney, thus this is just my opinion…

]]> by: George http://www.blogrel.com/2004/11/30/defrauded/#comment-1401 Thu, 02 Dec 2004 11:04:19 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1401 Onnik's point says as much about the investment climate as about the nature of the investors. It is true that many of the big Diasporan investors work through the office of the President or the Foreign Minister, but they don't HAVE TO. They do it as a matter of choice. Familiarity breeds contempt, contempt breeds dissatisfaction and angry letters like "I have invested a million dollars and all I got is this lousy t-shirt." It's the same with petty corruption. Should you take the high road of standing up for your rights? Or pay 1000 dram to the traffic cop/land title guy/electricity man? Are the people who pay a bribe as complicit as those who take it? Onnik’s point says as much about the investment climate as about the nature of the investors. It is true that many of the big Diasporan investors work through the office of the President or the Foreign Minister, but they don’t HAVE TO. They do it as a matter of choice. Familiarity breeds contempt, contempt breeds dissatisfaction and angry letters like “I have invested a million dollars and all I got is this lousy t-shirt.”

It’s the same with petty corruption. Should you take the high road of standing up for your rights? Or pay 1000 dram to the traffic cop/land title guy/electricity man? Are the people who pay a bribe as complicit as those who take it?

]]> by: Matt http://www.blogrel.com/2004/11/30/defrauded/#comment-1402 Thu, 02 Dec 2004 21:57:01 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1402 I have had a plan of my own to invest money and build a hotel ( <a href="http://www.zangezur.com">http://www.zangezur.com</a> ) in Tatev. I recently stopped this, before I had invested any real money. I had basically gone through the same issues that the Nazarians had. I am not a Diasporan, just a guy who came to Armenia and found what I saw as an opportunity. I decided against giving someone the power of attorney, but was tempted to (I don't live in Armenia now). I asked many times about whether one needed connections in the government. The advice given to me was that within an hour of Yerevan, yes, but down in Syunik no. I don't know how true that holds. The reason I stopped was not perceived corruption or the rule of law, I knew that risk when I started my plans, but ultimately that costs went up and up, and it became too expensive. I have had a plan of my own to invest money and build a hotel ( http://www.zangezur.com ) in Tatev. I recently stopped this, before I had invested any real money.
I had basically gone through the same issues that the Nazarians had. I am not a Diasporan, just a guy who came to Armenia and found what I saw as an opportunity.
I decided against giving someone the power of attorney, but was tempted to (I don’t live in Armenia now).

I asked many times about whether one needed connections in the government. The advice given to me was that within an hour of Yerevan, yes, but down in Syunik no. I don’t know how true that holds.

The reason I stopped was not perceived corruption or the rule of law, I knew that risk when I started my plans, but ultimately that costs went up and up, and it became too expensive.

]]> by: Onnik Krikorian http://www.blogrel.com/2004/11/30/defrauded/#comment-1403 Fri, 03 Dec 2004 03:03:03 -0800 http://www.blogrel.com/2004/11/30/defrauded/#comment-1403 George, I agree totally. It takes two to tango. However, I'd say that these investors see the President and Foreign Minister's offices as necessary to guarantee the safety of their investments. In that sense, they do have to go through these channels but they shouldn't have to. The reality, however, is that you need the backing of those high up, especially if you think you might ever end up in court. At the same time, you also have to keep these people sweet or else, what they giveth, they can also taketh away. George,

I agree totally. It takes two to tango. However, I’d say that these investors see the President and Foreign Minister’s offices as necessary to guarantee the safety of their investments. In that sense, they do have to go through these channels but they shouldn’t have to.

The reality, however, is that you need the backing of those high up, especially if you think you might ever end up in court. At the same time, you also have to keep these people sweet or else, what they giveth, they can also taketh away.

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