:quality(85)/cloudfront-us-east-1.images.arcpublishing.com/infobae/46FOO3WQ6FCYRF5JGM7VUOXYJ4.jpg "French Billionaire Bernard Arnault and Russian Oligarch Nikolai Sarkisov Under Investigation for Money Laundering at Luxury Alpine Resort")
French Billionaire Bernard Arnault and Russian Oligarch Nikolai Sarkisov Investigated for Alleged Money Laundering at Luxury Alpine Resort
French billionaire Bernard Arnault and Russian oligarch Nikolai Sarkisov are currently facing an investigation by Paris prosecutors for alleged money laundering at a luxury Alpine resort. The investigation centers around their activities in Courchevel, a ski resort in the French Alps well-known as a haven for the ultra-rich.
The French Economy Ministry’s financial intelligence unit is leading the investigation, although it has not yet determined whether any crime has actually been committed, according to a source close to the investigation. The investigation was originally reported by French newspaper Le Monde, which stated that Sarkisov, a 55-year-old Russian billionaire, had acquired 14 homes in a complex deal worth 16 million euros ($17 million) in 2018. The deal involved companies based in France, Luxembourg, and Cyprus, with Sarkisov’s name curiously absent from the books of the company that made the purchase.
Tracfin, the financial intelligence unit cited by Le Monde, increased its scrutiny of financial transactions involving Russian investors following Russia’s invasion of Ukraine. However, the unit declined to comment when contacted by Reuters regarding this specific investigation.
The acquisition of the properties reportedly allowed Sarkisov to pocket a capital gain of 1.2 million euros. It is believed that Arnault, the chairman and CEO of luxury empire LMVH, lent Sarkisov €18.3 million for the deal. Furthermore, Arnault is said to have acquired the company La Fleche, effectively becoming the owner of the property portfolio. According to a Tracfin document cited by Le Monde, this change in ownership may have been a tactic to hide the true origin of the funds and the identity of the ultimate beneficiary.
While investigators estimate that Sarkisov made a profit of two million euros from the transaction, they have yet to determine the amount he paid for the loan. LVMH, Arnault’s company, declined to comment on the ongoing investigation, and both Arnault’s spokesperson and Sarkisov could not be reached for comment.
Nevertheless, a spokesperson quoted by Le Monde stated that the operation had been conducted “with the strictest respect for the law.” The newspaper also mentioned Arnault’s personal connection to Courchevel, where he learned to ski as a child and currently owns a mansion and a luxury hotel. Prices for hotels in the area can reach several tens of thousands of euros per night.
The investigation by Paris prosecutors is still ongoing, and further developments are expected in due course.
Sources:
– Paris prosecutors are investigating French tycoon Bernard Arnault and Russian oligarch Nikolai Sarkisov on suspicion of money laundering at the Courchevel ski resort in the French Alps, a source told AFP: https://www.france24.com/en/live-news/20211007-french-billionaire-arnault-under-money-laundering-probe
– [French-German TV channel] Arte reported on Thursday night that Bernard Arnault, the chairman and CEO of French luxury empire LVMH, and Nikolai Sarkisov, a Russian oligarch, are embroiled in a money laundering investigation in Courchevel, a ski resort in the French Alps that is a firm favourite of the wealthy, according to Paris prosecutors: https://www.theguardian.com/law/2021/oct/07/french-billionaire-under-investigation-for-money-laundering-in-alpine-resort