Majority of Proceeds From Sale of Gagik Khachatryan Family’s Los Angeles Mansion to Be Returned to Armenia

YEREVAN — Armenia’s Prosecutor General, Anna Vardapetyan, received a delegation led by David Allen, the Chargé d’Affaires of the United States in Armenia, during a meeting that focused on ongoing legal cooperation between the two countries.

A key issue discussed was the repatriation to Armenia of the majority of the proceeds from the sale of a mansion in the Holmby Hills area of Los Angeles that belongs to the family of former Armenian Minister of Finance Gagik Khachatryan.

The case stems from a civil forfeiture settlement reached by the U.S. Department of Justice involving the luxury property. In 2011, the mansion was purchased through a trust benefiting Khachatryan’s sons using funds provided by an Armenian businessman. At the time, Khachatryan was the highest-ranking official overseeing taxes and customs in Armenia. His sons maintained that the funds were loans, while U.S. authorities alleged that the repeatedly extended, unpaid loans were in fact a cover for bribe payments. Those same payments are also the subject of ongoing criminal proceedings in Armenia.

Under the terms of the settlement, the mansion will be forfeited to the United States and sold at the highest obtainable market value. Following the sale, 85 percent of the net proceeds will remain with the United States, while the remaining portion will be delivered to Khachatryan’s sons and a corporation they own. At the same time, the U.S. Attorney General has discretionary authority to transfer forfeited assets to foreign countries that directly or indirectly participated in the seizure or forfeiture process. The offices involved in the case have indicated that they intend to recommend transferring some or all of the forfeited proceeds to the Republic of Armenia.

According to Armenia’s Prosecutor General’s Office, the outcome reflects effective cooperation between the Armenian prosecution authorities and their U.S. counterparts within the framework of the criminal case launched in Armenia. The office emphasized that the Los Angeles property, recognized by a competent U.S. court as an asset of criminal origin, will be sold at full market value, with the majority of the proceeds expected to be returned to Armenia.