The U.S. Department of Justice is seeking the forfeiture of a more than 30,000-square-foot mansion in the Holmby Hills, pursuant to a civil forfeiture complaint that alleges the residence was purchased with bribes paid by an Armenian businessman to the family of Gagik Khachatryan, a former high-ranking Armenian public official.
Khachatryan, 66, who was known as the “super minister” because of his significant responsibilities, served as chairman of the State Revenue Committee of the Republic of Armenia from 2008 to 2014 and as minister of finance for the Republic of Armenia from 2014 to 2016, authorities said. In the criminal complaint, which was filed on May 2 in federal court in Los Angeles, authorities allege that businessman Sedrak Arustamyan paid Khachatryan and his family more than $20 million in bribes in exchange for favorable tax treatment of his businesses. The bribe payments allegedly were used to purchase the Holmby Hills property, which was recently listed for sale for $63.5 million.
Khachatryan and his sons are charged in the Republic of Armenia with allegedly receiving bribes. Criminal charges are also pending in Armenia against Arustamyan for allegedly paying bribes.
The case was investigated by the FBI’s Eurasian Organized Crime Task Force and the United States Marshals Service. The Republic of Armenia’s Prosecutor General’s Office and National Security Service provided assistance.
The Kleptocracy Asset Recovery Initiative is led by a team of prosecutors who work in partnership with federal law enforcement agencies on the forfeiture of proceeds of foreign corruption. In 2015, the FBI formed International Corruption Squads across the country to address national and international corruption. Individuals with information about possible proceeds of foreign corruption and money laundered through the United States should email to kleptocracy@usdoj.gov, or visit tips.fbi.gov.
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