Gagik Khachatryan, Armenian Bribery, California 2024

Defendant Name, Crime, Location, Year

LOS ANGELES, CA – In a stunning revelation, the family of Gagik Khachatryan, a former Armenian government minister, has seen their luxurious Holmby Hills mansion seized by the FBI and U.S. Marshals in connection with an Armenian bribery case. The mansion, purchased in 2011, was allegedly bought with funds provided by an Armenian businessman who claims the money was a loan that was repeatedly extended without repayment.

According to court documents, Khachatryan’s sons claimed the funds were provided as loans by the businessman, while the U.S. government alleged the loans were covers for bribe payments. The payments are also the subject of pending criminal prosecutions in the Republic of Armenia.

Under the terms of the settlement, the mansion will be forfeited to the United States. The U.S. government will then sell the property at the highest obtainable market price and retain 85% of the net proceeds of the sale. The remaining net proceeds of the sale will be delivered to Khachatryan’s sons and a corporation they own.

The case was investigated by the FBI’s Eurasian Organized Crime Task Force (EOCTF) and the U.S. Marshals Service. The EOCTF is composed 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.

Principal Deputy Assistant Attorney General Nicole M. Argentieri, head of the Justice Department’s Criminal Division; U.S. Attorney Martin Estrada for the Central District of California; Acting Assistant Director in Charge Krysti Hawkins of the FBI Los Angeles Field Office; and U.S. Marshal David M. Singer made the announcement.

The Kleptocracy Asset Recovery Initiative is a team of dedicated prosecutors in the Justice Department’s Money Laundering and Asset Recovery Section, in partnership with federal law enforcement agencies and often with U.S. Attorneys’ Offices, to forfeit the proceeds of foreign official corruption. Individuals with information 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 or https://tips.fbi.gov/.

The case is a stark reminder of the corrupting influence of power and the importance of holding public officials accountable for their actions. The seizure of the mansion is a significant step in the fight against public corruption and a testament to the tireless efforts of law enforcement agencies to protect the public trust.

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