(IntegrityTimes.com) – The US Department of Justice announced on July 8 that it would seize a mansion in Holmby Hills, Los Angeles, that is linked to an Armenian corruption scandal. The French chateau-style property, which has 11 bedrooms and is worth $63 million, was owned by the family of Armenia’s former Minister of Finance Gagik Khachatryan. After reaching a settlement, the DOJ stated that the US government will seize the property and sell it to the highest bidder. The US government will keep 85% of the proceeds.
US authorities stated that the property was purchased in 2011 using money paid by Armenian entrepreneur Sedrak Arustamyan to Khachatryan and his family in exchange for preferential tax treatment. Arustamyan, who is the Director of Multi Group Concern LLC, allegedly paid the so-called “Super Minister” over $20 million for the privilege.
In 2019 Arustamyan was charged with laundering vast sums of money. In June 2020, Arustamyan’s attorney stated that his client had not been interviewed regarding hundreds of accusations that he both gave and received bribes during Armenia’s 2017 parliamentary elections. The attorney told reporters that he was aware of the allegations linked to his client, but clarified that he had yet to be interviewed.
Armenia’s anti-corruption council was accused of extravagant spending in 2015. Then Minister of Finance Khachatryan was questioned by the Council about his family’s involvement in several businesses, which include internet service provider Ucom, supermarket chain Nor Zovq, food importers and a large shopping center in Yerevan. Khachatryan denied he was connected to the companies. When the Council asked how it could address corruption when there were known conflicts of interest, Khachatryan dismissed the concerns as a “different topic”.
The proceeds leftover from the sale of the disgraced politician’s mansion will be shared between Khachatryan’s sons and a firm they own. At the time of the mansion’s purchase, Khachatryan was the highest ranking official overseeing customs and taxes in Armenia. His sons claimed that Arustamyan only loaned the funds. The US DOJ states that the “loans” were extended multiple times without being repaid at all to cover up bribe payments. The bribes are the subject of pending legal cases in Armenia.
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