The high-profile investigation into the case of Ramin Isayev, the former CEO of SOCAR AQS, has captivated the Azerbaijani public. Isayev’s trial, which began on July 29, 2024, has brought to light numerous allegations of financial misconduct and corruption that span several years and multiple companies. What began as focused investigation into embezzlement and fraud, has since uncovered a web of corruption and embezzlement that spans several years and multiple companies.
Initial Arrest and Charges
Isayev was detained by the Anti-Corruption Main Department under the Prosecutor General’s Office of Azerbaijan for allegedly misappropriating a loan of 16 million manats. This loan, issued by the International Bank of Azerbaijan between 2012 and 2014, was tied to a company associated with the Baghlan Group, where Isayev held a senior position. Following his arrest, a preventive measure of detention was imposed and Isayev was detained pending trial.
The Investigation Expands
The investigation quickly uncovered further details of Isayev’s criminal activities, particularly during his tenure as CEO of SOCAR AQS. The company suspected significant violations and suspicions of embezzlement, leading to an investigation into Isayev’s activities as the director in 2020.
To evade accountability, Isayev fled Azerbaijan, acquired Turkish citizenship under the name Ramin Ali Hakan, and lived a lavish lifestyle funded by the embezzled money. He invested in banks and real estate in elite areas of Istanbul. His Turkish citizenship and new identity initially shielded him from Azerbaijani authorities, allowing him to conceal his misdeeds.
Elaborate Financial Schemes and Embezzlement
The investigation revealed Isayev’s use of complex criminal schemes involving shell companies registered in the name of his relatives. These companies provided goods and services to SOCAR AQS at inflated prices, causing substantial financial losses. One notable scheme involved leasing land at inflated rates, resulting in the company suffering losses of millions of manats.
Isayev also manipulated company reports to hide his crimes. For instance, he falsified financial documents for a SOCAR AQS project in Bangladesh, creating fake financial statements and forcing subordinates to sign them. This allowed him to show inflated income, secure bonuses, and obtain loans based on fraudulent data.
Isayev further engaged in fraudulent activities by impersonating well-known brands. For example, he renamed a company registered in a relative’s name to Baker Energy, thereby exploiting the reputation of a well-known American company for personal gain.
The investigation uncovered that nearly all of Isayev’s “business activities” were driven by criminal intent. For instance, he conspired with Chinese national Tan Ting, utilizing several Chinese companies to embezzle and transfer funds. Tan Ting, also known as Kostya Ting, is currently on the international wanted list by Chinese authorities for fraudulent activities, and is evading justice.
Misuse of Company Funds and Abuse of Power
Isayev hired over thirty relatives, many of whom lacked professional skills, and arranged high salaries for them, disproportionate to their roles. Some employees received salaries without working, including members of a musical ensemble hired as “specialists” in strategic projects and logistics, receiving roughly 500,000 manats from 2016 to 2020.
To craft an image of a highly educated and forward-thinking executive, essential for executing his fraudulent schemes, Isayev secretly funded his education at prestigious US institutions, including the Massachusetts Institute of Technology (MIT), using company money without authorization. Additionally, he made significant donations from company funds, such as the $100,000 given to the Harvard Kennedy School on August 16, 2018, and June 10, 2019, which he falsely presented as personal contributions. These expenditures were solely to have his name listed as a donor on the institution’s website, thus falsely bolstering his business credentials. After the criminal case was opened against Isaev, Harvard Business School removed his name from the list of philanthropists.
Retaliation and Further Crimes
Following his dismissal, Isayev sought revenge by orchestrating a cyberattack on SOCAR AQS’s servers through a close associate. Additionally, he attempted to intimidate auditors and investigators by sending threats and defamatory materials about the company. For these actions, a criminal case was initiated against associate under Articles 272.1 and 273.2 of the Criminal Code of the Republic of Azerbaijan and an investigation was conducted.
Broader Implications Beyond SOCAR AQS
Isayev’s criminal activities extended beyond SOCAR AQS. His previous employment at KCA Deutag ended in scandal, after his contract was not renewed due to “mistakes and the inability to perform the tasks assigned to him”. Isayev did not take this well, threatening company officials and attempting to discredit the management.
All in all, Isayev’s tenure at SOCAR AQS culminated in the embezzlement of over 54 million manats.
Conclusion
The preliminary investigation into Ramin Isayev’s case has concluded, and the materials have been submitted to the Baku Serious Crimes Court and Case No. 1(101) 2048/2024 – the State of Azerbaijan vs. Ramin Isayev is now in trial. Isayev faces multiple charges, including embezzlement and money laundering. The final extent of his criminal activities will be determined after the judicial investigation and sentencing.
Isayev’s investigation and trial have led to comprehensive overview of his intricate and far-reaching criminal activities, shedding light on one of Azerbaijan’s most significant corruption scandals. Further information is expected to come to light as the case progresses.
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