29-9-2023 (PARIS) Prominent French billionaire Bernard Arnault and Russian oligarch Nikolai Sarkisov find themselves at the center of a money laundering investigation at an upscale Alpine retreat, as disclosed by Paris prosecutors.
The inquiry is focused on their dealings in Courchevel, a renowned French Alps ski destination celebrated as a playground for the ultra-wealthy, according to statements released late Thursday (Sep 28).
Leading the investigation is the financial intelligence unit of the French economy ministry, though it has not yet determined whether any unlawful activity transpired, according to a source intimately connected with the investigation as conveyed to AFP.
French daily Le Monde, drawing on insights from the Tracfin financial intelligence unit, reported that the 55-year-old Russian billionaire allegedly acquired 14 residential properties in 2018 for €16 million (equivalent to US$17 million at current exchange rates) from a single seller. This complex transaction involved companies headquartered in France, Luxembourg, and Cyprus. Notably, Sarkisov’s name remains conspicuously absent from the official records of the purchasing entity.
The entity in question, known as La Fleche, is believed to have acquired three additional real estate units from a separate company, which subsequently transpired to be owned by Sarkisov. The intricate sequence of real estate sales and acquisitions allowed the Russian tycoon to amass a capital gain of €1.2 million, as detailed by the publication.
Arnault, the head of the luxury conglomerate LVMH and ranked the second-wealthiest individual globally after Elon Musk by Forbes, is under suspicion of extending a €18.3 million loan to Sarkisov in connection with this property deal. Furthermore, it is alleged that Arnault subsequently assumed ownership of La Fleche, effectively gaining control of the real estate portfolio.
This transfer of ownership raises questions about whether it was designed to conceal the precise source of the funds and the true identity of the “ultimate beneficiary,” as revealed in a Tracfin document cited by Le Monde.
Investigators surmise that Sarkisov reaped a profit of two million euros from this intricate transaction, yet they remain uncertain about the precise sum he paid for the loan.
When contacted by AFP, LVMH declined to comment on the ongoing investigation. However, Le Monde quoted a spokesman as affirming that the operation had been conducted “in strict compliance with the law.”
The newspaper also quoted sources close to Sarkisov, who contended that the capital gain amounted to “just a few hundred thousand euros” and underscored that the Russian magnate was not directly involved in the process.
Le Monde reported that, according to “family tradition,” Arnault holds a special connection to Courchevel, having learned to ski there as a child. He also maintains ownership of a mansion and a luxury hotel in the area.
The cost of accommodations in the resort can soar to several tens of thousands of euros per night, as highlighted by the publication.
