France’s wealthiest individual, Bernard Arnault, the proprietor of LVMH luxury goods conglomerate and the founder of the Fondation Louis Vuitton in Paris, is reportedly under investigation in France over potential involvement in money laundering. The investigation, initially disclosed by Le Monde, is described as a “preliminary” one by the Paris prosecutor’s office, clarifying that Arnault has not been formally accused of money laundering.
The Paris district attorney has affirmed to AFP that Arnault is part of an inquiry initiated in 2022 into real estate transactions allegedly associated with Russian oligarch Nikolai Sarkisov. This investigation was prompted by information provided by the Ministry of Finance’s anti-money laundering service, Tracfin.
While Sarkisov is not subject to European sanctions following Russia’s 2022 invasion of Ukraine, he is included in Ukraine’s list of sanctioned business figures due to his close ties with the Kremlin.
The focus of the probe revolves around properties in the upscale French ski resort Courchevel. Arnault owns two hotels there, including Le Cheval Blanc. Investigators, as reported by Le Monde, claim that in 2018, Sarkisov purchased 17 units in a building adjacent to Arnault’s hotel for €18.3 million. Notably, the oligarch’s name does not appear in these transactions; instead, the buyer is listed as the company La Flèche. Tracfin, however, contends that a series of intricate financial transactions involving various European companies ultimately lead to a Cyprus-based firm, Arrowband, with Sarkisov as its sole holder.
According to Tracfin’s investigation, the entire €18.3 million transaction was financed by Métropole 1850, a subsidiary of Bernard Arnault’s private holdings. Several months later, Métropole 1850 acquired the company that owned the building from Sarkisov for €1.8 million. Tracfin’s inquiry aims to elucidate the disparity in these prices, alleging that Sarkisov acted as a “straw man” hired to conceal the actual beneficiary—Bernard Arnault. The real estate sale to himself purportedly enabled Sarkisov to gain a profit of €1.2 million.
Both parties have categorically denied any wrongdoing. Arnault’s lawyer, Jacqueline Laffont, asserted that “the transaction was perfectly legitimate” and labeled media allegations as “absurd.” She added, “Who could possibly imagine that the man who built Europe’s leading company would resort to money laundering for the extension of a hotel?”
A source close to Sarkisov acknowledged the deal to Le Monde but emphasized that his real estate firm assumed all the risks by individually acquiring the units before selling the entire building, which subsequently appreciated in value. “If any of the owners had refused to sell, the whole operation would have failed,” the source stated.
Despite the transaction occurring four years before the current sanctions against Russia, Tracfin has renewed its investigations into Russian-owned properties in France, including those owned by Sarkisov. Additionally, a separate inquiry into “bribery” and “criminal laundering” has been launched concerning a €3 million consultant contract Sarkisov signed in 2019 with former French President Nicolas Sarkozy.
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