The Investigative Committee claimed on Thursday that Tsarukian had used threats to force a Lebanese-Armenian business partner, Kevork Toramanian, to give up his 50 percent stake in their joint venture in 2010. It said the stake was worth $2.5 million.

The law-enforcement agency charged Tsarukian as well as the former chairman of his Multi Group holding company, Sedrak Arustamian, with extortion and money laundering. Lawyers representing the two arrested men flatly denied the accusations.

“This is an absolutely false accusation that has no basis in reality,” Tsarukian’s lawyer, Emin Khachatrian, told RFE/RL’s Armenian Service.

Khachatrian said the charges are based on Toramanian’s claims “not substantiated by any documents.” He noted that Toramanian waited for more than 15 years before alleging the extortion during the Armenian authorities’ crackdown on Tsarukian and his businesses.

The lawyer claimed to have documentary proof that his client himself was defrauded by the Lebanese businessman. According to the Investigative Committee, the latter failed to fully honor his contractual obligations on time “due to the inaction of a supplier company.”

Tsarukian was arrested on July 6 after Prime Minister Nikol Pashinian’s repeated pledges to jail him and the top leaders of other major opposition groups that challenged the ruling Civil Contract party in the disputed elections. He was first charged with defrauding Iranian business partners. Arustamian was arrested on this charge earlier this week.

In late July, Tsarukian was also charged with evading taxes that were due to be paid by a brandy distillery owned by him. The tycoon rejects the accusations as politically motivated.