DOJ Settles Forfeiture Case Against Mansion as Part of Foreign Bribery Case
DOJ reached a settlement in a civil forfeiture case against a Los Angeles mansion belonging to a former Armenian government official's family. The mansion will be forfeited to the U.S., which will then sell the property, retaining 85% of the proceeds. The remaining funds will be sent to the sons of the former official, Gagik Khachatryan, and a corporation that the sons own. The forfeiture is part of the resolution of a foreign corruption scheme prosecuted by DOJ.
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DOJ said the attorney general can transfer the proceeds to "any foreign country that participated directly or indirectly in the seizure or forfeiture of the property." The office that brought the case will recommend that some or all the money be sent to Armenia, DOJ said.
A trust benefiting Khachatryan's sons bought the mansion in 2011, using "funds provided by an Armenian businessman," DOJ said. The sons said the funds were loans, while the U.S. said the loans were "covers for bribe payments," which are subject to criminal proceedings in Armenia.