Seized Mansion Linked to Former Armenian Finance Minister Sparks Corruption Probe

A US court has seized a lavish California mansion belonging to the family of a former Armenian finance minister, ruling that it was purchased with funds of criminal origin. The case has sparked a high-profile corruption investigation, with authorities in both the US and Armenia working to recover the illicit proceeds and hold the responsible parties accountable.

Uncovering a Web of Corruption

Mansion Seized in Corruption Crackdown

The mansion in question, a sprawling 30,000-square-foot property in the exclusive Holmby Hills neighborhood of Los Angeles, belonged to Gurge and Artyom Khachatryan, the sons of former Armenian Minister of Finance Gagik Khachatryan. The US Justice Department alleged that the property was purchased using more than $20 million in bribes paid by an Armenian businessman to the Khachatryan family in exchange for favorable tax treatment.The case was first opened in the US in May 2022, and the Khachatryan brothers have since reached an agreement with the US Justice Department to forfeit the property to the US government. In exchange, they will be allowed to keep 15% of the net proceeds from the sale of the mansion.

Cooperation Between US and Armenia

The Armenian General Prosecutor’s office has announced that negotiations are underway between Armenia and the US to return the majority of the proceeds from the sale of the mansion to Armenia. This cooperation between the two countries is seen as a significant step in the fight against corruption, as the Armenian authorities have been working to recover assets linked to high-level officials accused of embezzlement and bribery.The case has also led to a wider corruption probe in Armenia, with Gagik Khachatryan and 25 others, including his two sons, facing investigation. In total, the Armenian Anti-Corruption Court could confiscate 210 properties, 13 vehicles, shares of 29 legal entities, and more than ֏33 billion ($77 million) as a result of the ongoing investigation.

Charges and Prosecutions

Gurgen and Artyom Khachatryan are also facing criminal charges, including money laundering over $100 million, brought by the National Security Service of Armenia. Their father, Gagik Khachatryan, is accused of abusing his official powers and is currently facing charges of committing particularly large-scale embezzlement, complicity in money laundering, and receiving particularly large-scale bribes in the Yerevan City Court.The case has highlighted the ongoing efforts by authorities in both the US and Armenia to crack down on corruption and recover assets that have been obtained through illicit means. The cooperation between the two countries is seen as a positive step in the fight against corruption, and the outcome of the case could have far-reaching implications for the political and economic landscape in Armenia.