US court seized LA mansion of the former Armenian finance minister’s family

US court seized LA mansion of the former Armenian finance minister's family
US court seized LA mansion of the former Armenian finance minister's family

A California mansion owned by a former Armenian finance minister’s family has been seized by a US court after it was determined to have been purchased with illegal monies.

The mansion in Los Angeles belongs to Gurge and Artyom Khachatryan, the sons of former Minister of Finance Gagik Khachatryan.

On Monday, the Armenian General Prosecutor’s office announced that negotiations between Armenia and the US were underway on the return of the lion’s share of the proceeds from the house’s sale to Armenia.

In mid-June, Gurge and Artyom Khachatryan reached an agreement with the US Justice Department to forfeit the property to the US government in exchange for keeping 15% of the net proceeds from its sale.

‘The offices that brought the case intend to recommend transfer of some or all the forfeited proceeds to the Republic of Armenia,’ read the US Justice Department’s statement.

The Armenian General Prosecutor’s office hailed the outcome, stating it was thanks to ‘effective cooperation’ between them and the US authorities. The case was opened in the US in May 2022.

The US Justice Department described the house as a ‘30,000-square-foot mega-mansion’ in the Holmby Hills neighbourhood of LA. They said it was purchased in 2011 using bribes amounting to more than $20 million paid by an Armenian businessman to the family of Gagik Khachatryan in exchange for favourable tax treatment of his businesses.


South Africa: Elephant Herd Trampled a Spanish Tourist

The mansion was previously listed for sale in 2022, shortly before the court case was launched, for $63.5 million. However, it failed to sell even after several discounts.

Gagik Khachatryan, an influential former official, served as Chair of the State Revenue Committee from 2008 to 2014, then as Minister of Finance until 2016.

Khachatryan and 25 others, including his two sons, still face a corruption probe in Armenia. In total, 210 properties, 13 vehicles, shares of 29 legal entities, and more than ֏33 billion ($77 million) could be confiscated by the Armenian Anti-Corruption Court as a result.

Gurgen and Artyom Khachatryan are also being criminally prosecuted by the National Security Service, on charges including money laundering over $100 million.

Gagik Khachatryan is accused of abusing his official powers. Yerevan City Court is currently hearing cases against him on charges of committing particularly large-scale embezzlement, complicity in money laundering, and receiving particularly large-scale bribes.

Ocmedia header logo


Please enter your comment!
Please enter your name here