French Billionaire Bernard Arnault and Russian Oligarch Nikolai Sarkisov Under Investigation for Alleged Money Laundering at Luxury Alpine Resort

116

French Billionaire Bernard Arnault and Russian Oligarch Under Investigation for Money Laundering at Luxury Alpine Resort

Paris prosecutors have launched an investigation into French billionaire Bernard Arnault and Russian oligarch Nikolai Sarkisov for alleged money laundering at a luxury ski resort in Courchevel, located in the French Alps. Known as a playground for the ultra-rich, Courchevel has become the focal point of the investigation, which is being led by the French Economy Ministry’s financial intelligence unit.

While the investigation is still ongoing and no charges have been filed, the probe aims to determine whether any criminal activity took place. According to a source close to the investigation, the financial intelligence unit is delving into the complex dealings surrounding Sarkisov’s acquisition of 14 properties in Courchevel, reportedly worth €16 million ($17 million). The transaction involved companies based in France, Luxembourg, and Cyprus, with Sarkisov’s name mysteriously absent from the company records.

The scrutiny on financial transactions involving Russian investors has intensified since the Russian invasion of Ukraine. Tracfin, the financial intelligence unit, has been particularly cautious about such transactions and declined to comment on this recent investigation. In addition to the 14 properties, Sarkisov is believed to have purchased three more real estate units through another company reportedly owned by him.

Arnault, the chairman and CEO of luxury empire LVMH, is suspected of lending Sarkisov €18.3 million for the property deal, after which he allegedly acquired the company that owned the property portfolio. This change in ownership has raised suspicions that it was done to obscure the origins of the funds and the identity of the ultimate beneficiary.

Although investigators estimate that Sarkisov made a profit of €2 million from the operation, they have yet to determine the exact amount he paid for the loan. LVMH declined to comment when contacted by AFP, and both Arnault’s spokesman and Sarkisov could not be reached for comment.

Le Monde, the French newspaper that broke the story, quoted a spokesperson claiming that the transaction had been conducted in accordance with the law. They also cited sources close to Sarkisov, who downplayed the capital gain, stating that it was only a few hundred thousand euros and that Sarkisov himself was not directly involved.

The investigation into Arnault and Sarkisov’s dealings in Courchevel continues, shedding light on the intricate web of financial transactions and potential money laundering at this exclusive Alpine resort. Prices for hotels in the area can soar into the tens of thousands of euros per night, adding to its allure for high-profile individuals.