Case description
On November 9, the HACC found Arsen Isaakian, former director of the State Innovation Financial-Credit Institution, guilty of transferring the right to claim the debt to a debt recovery firm for a significantly lower amount than the debt itself. The court found him guilty, but exempted him from punishment due to the expiration of the statute of limitations.
Arsen Isaakian is a former Chair of the Board of the State Innovation Financial-Credit Institution (SIFCI). In 1998, the SIFCI provided a UAH 16 million loan to the State Enterprise Antonov for the period until 2001. Antonov did not repay the debt, so the SIFCI initiated a number of lawsuits to recover the loan amount.
In 2015, the SIFCI sold the right to claim the debt to a private company called Factor Plus for only UAH 1.5 million, which led to the NABU launching an investigation. Isaakian was detained in February 2016: the investigation accused him of causing UAH 14.6 million in damage to the state institution.
In September 2018, there was an attempt to conclude a plea agreement. According to the agreement, the former head of the SIFCI were to pay only a UAH 17,000 fine, and there was no obligation to compensate the state for losses. In 2020, the HACC did not approve this agreement because it was not in the public interest.
Arsen Isaakian's actions were classified under Article 367, part 2 of the Criminal Code of Ukraine, namely, neglect of official duty. Before that, he was charged with embezzlement and abuse of office. The court sentenced Isaakian to 3.5 years in prison, a UAH 12,750 fine, and a 3-year ban on holding certain positions. However, the statute of limitations in the case had expired, so the court exempted Isaakian from punishment.
