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The U.S. Department of Justice announced on Monday its plan to seize a $63 million estate in Los Angeles, alleging the property was purchased with bribe payments intended for the family of a former Armenian government official.

$63M Real Estate Feds Seizing : Consent Judgment Approved

U.S. District Judge Josephine L. Staton approved a consent judgment for the estate's forfeiture on June 30. The ruling followed a civil suit filed by the government in May 2022, which claimed the estate was acquired through corrupt activities by Armenian politician Gagik Khachatryan.

Involvement of Khachatryan's Sons

Two of Khachatryan's adult sons, Artyom and Gurgen, are named as counterclaimants in the case. An attorney representing the sons did not immediately respond to requests for comment.

Prosecutors revealed that a trust benefiting Artyom and Gurgen Khachatryan bought the property in 2011 using funds from an Armenian businessman. At the time, their father was a senior government official overseeing taxes and customs in Armenia. The sons claimed the money was a loan, but prosecutors argued these so-called loans were intended to facilitate bribe payments, which are now the focus of ongoing criminal prosecutions in Armenia.

$63M Real Estate Fed Seizing: Sale of the Property

The $63M real estate in Holmby Hills will be sold at the highest attainable market price by the government. The DOJ stated that it will retain 85% of the net proceeds from the sale, while the remaining amount will be allocated to Khachatryan's sons and a corporation they own. The DOJ and other involved agencies plan to recommend to Attorney General Merrick B. Garland that some or all of the sale proceeds be transferred to the Armenian government.

Legal Representation

The government is represented by Hunter Smith of the DOJ's Money Laundering and Asset Recovery Section, and Maxwell Coll from the U.S. Attorney's Office for the Central District of California. Artyom and Gurgen Khachatryan are represented by Christopher James, Ephraim Wernick, and Peter Thomas of Vinson & Elkins LLP.

$63M Real Estate Fed Seizing: Impact of the Seizure

This $63M real estate seizure highlights the DOJ's ongoing efforts to combat international corruption and recover assets obtained through illicit means. The case underscores the complex nature of international bribery schemes and the legal battles that follow.