French billionaire Bernard Arnault and Russian oligarch Nikolai Sarkisov are being looked into for suspected involvement in money laundering at a fancy mountain resort, as stated by prosecutors in Paris.
French billionaire Bernard Arnault and Russian oligarch Nikolai Sarkisov are being looked into for possible involvement in suspicious financial activities at a luxurious ski resort called Courchevel in the French Alps. This place is known for being a favorite spot for extremely wealthy individuals.
The French government’s financial intelligence unit is leading the investigation, but they haven’t confirmed if any illegal activities took place yet.
According to a source close to the investigation, the 55-year-old Russian billionaire is said to have bought 14 housing units in 2018 for 16 million euros in a complex deal that involved companies from France, Luxembourg, and Cyprus.
Even though it’s believed that Sarkisov made the purchase, his name doesn’t appear in the records of the company involved in the transaction.
The company, named La Fleche, is thought to have purchased three more properties from a different company, which, surprisingly, also belonged to Sarkisov.
This self-sale allowed the Russian to make a profit of 1.2 million euros, according to reports.
Arnault, who oversees the luxury business LVMH and is considered the world’s second-richest person after Elon Musk by Forbes, is suspected of lending 18.3 million euros to Sarkisov for this transaction.
Afterwards, he’s believed to have taken control of La Fleche, essentially becoming the owner of the real estate.
This change in ownership might have been planned “to keep the exact source of the funds hidden,” as stated in a Tracfin document quoted by Le Monde. This also involves concealing the identity of the “ultimate beneficiary.”
Investigators suspect Sarkisov gained two million euros from this deal, but they are unsure how much he paid for the loan.
When contacted by AFP, LVMH chose not to make a comment.
Le Monde reported that a spokesperson stated the operation was done “following all legal rules.”
The paper also mentioned that individuals close to Sarkisov said the profit was only “a few hundred thousand euros” and that the Russian wasn’t directly involved.
According to “family stories,” as per Le Monde, Arnault has a sentimental attachment to Courchevel. He apparently learned to ski there when he was a child and now owns a large house and a fancy hotel in the area.
The prices for staying in a hotel in this resort can go up to tens of thousands of euros per night, the paper pointed out.
SOURCE:FRANCE24