BEL AIR/BEVERLY HILLS—The United States Department of Justice disclosed in a news release on July 8 that they reached a settlement regarding a mansion in Holmby Hills that belonged to the family of Gagik Khachatryan, a former government official in the Republic of Armenia. According to reports the property was previously listed for $63 million. It is located on Mapleton Drive and is 33, 652 square feet the Los Angeles Times reported.
In 2011, a trust benefiting Khachatryan’s sons purchased the property with funds provided by an Armenian businessman for $14 million. During that time, Khachatryan was the most senior official in charge of taxes and customs in the Republic of Armenia. His sons claimed that the funds were provided as loans by the businessman, while the United States alleged the loans, which were repeatedly extended without repayment, were covers for bribe payments. The payments are the subject of pending criminal prosecutions in the Republic of Armenia.
Terms of the settlement indicate the mansion will be forfeited to the United States. The United States will sell the property at the highest obtainable market price and retain 85 percent of the net proceeds of the sale. The remaining net proceeds of the sale will be delivered to the Khachatryan’s sons and a corporation they own. The U.S. Attorney General has the discretionary authority to transfer forfeited property to any foreign country that participated directly or indirectly in the seizure or forfeiture of the property. The offices that brought the case intend to recommend transfer of some or all of the forfeited proceeds to the Republic of Armenia.
The FBI’s Eurasian Organized Crime Task Force (EOCTF) and U.S. Marshals Service investigated the case. The EOCTF consists of multiple law enforcement agencies including the FBI, IRS Criminal Investigation, U.S. Postal Inspection Service, Glendale Police Department, Los Angeles Police Department, and Los Angeles County Sheriff’s Department. The Justice Department’s Official of International Affairs, the Republic of Armenia’s Prosecutor General’s Office, and Armenian investigative authorities also provided critical assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with details about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to kleptocracy@usdoj.gov (link sends e-mail) or https://tips.fbi.gov/.
By Trevor