U.S. is seizing Los Angeles mansion from family of Armenian politician accused of bribery

The U.S. is seizing a more than 30,000-square-foot Los Angeles mansion from the family of an Armenian politician, a sprawling estate on the Westside which federal prosecutors allege was paid for with millions of dollars in bribes.

The home belonging to the family of Gagik Khachatryan is situated in LA’s Holmby Hills neighborhood, wedged between Beverly Hills and Bel Air, and was estimated by U.S. prosecutors to be worth $63.5 million in May 2022. An updated estimated value of the home was not given Monday. But the American government will sell it off for the “highest obtainable market price” and keep 85 percent of net profits made from the house’s sale, according to a news release from the U.S. Department of Justice.

On Monday, federal prosecutors announced a settlement allowing the forfeiture of the estate, which was purchased by a trust benefitting Khachatryan’s sons in 2011. The funds came from an Armenian businessman, prosecutors said.

While Khachatryan’s sons have said the payments were loans, the Department of Justice alleges the money used to buy the house actually came from covers for bribe payments. U.S. prosecutors say those so-called loans were never repaid as they were repeatedly extended and are currently the subject of ongoing criminal investigations in the Republic of Armenia.

When the home was bought in 2011, Khachatryan was the country’s most senior government official overseeing taxes and customs. He was chairman of Armenia’s State Revenue Committee from 2008 to 2014 and went on to become the its Minister of Finance from 2014 to 2016, according to federal prosecutors.

In May 2022, when prosecutors first announced plans to seize the estate, they alleged Armenian businessman Sedrak Arustamyan paid Khachatryan and his family more than $20 million in bribes for the home’s purchase — money they say he paid in exchange for favorable tax treatment of his businesses.

In 2019, the Investigative Committee of the Republic of Armenia announced charges against Arustamyan in connection with allegations of money laundering and tax evasion.

The Los Angeles Times described the estate in May 2022 as an 11-bedroom, 27-bathroom French chateau-style estate that’s just down the street from the Playboy Mansion. The Times reported the home was previously owned by Jon Feltheimer, CEO of Lions Gate Entertainment, and the family hired architect Richard Landry, who has worked with celebrities such as Mark Wahlberg and Tom Brady.

In announcing the official seizure Monday, federal prosecutors said net profits left over from the 85 percent stake the U.S. government has will go to Khachatryan’s sons and a corporation they own. However, in a news release, the department also indicated that the U.S. Attorney General can, and may very well, transfer some of the property to the Armenian government.

“The 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 news release states. “The offices that brought the case intend to recommend transfer of some or all of the forfeited proceeds to the Republic of Armenia.”

Article Credit: https://www.cbsnews.com/losangeles/news/u-s-is-seizing-los-angeles-mansion-from-family-of-armenian-politician-accused-of-bribery/