US Markets
Friday, September 29th, 2023 2:22 pm EDT
Key Points
- Bernard Arnault, the CEO of LVMH, is under investigation by the Paris public prosecutor’s office in connection with financial transactions involving Russian oligarch Nikolai Sarkisov.
- The investigation is in a preliminary stage, and Arnault has not been charged with any crime.
- The company’s deputy CEO has clarified that the transaction was managed by a specialized investment unit focused on European real estate.
The Paris public prosecutor’s office is currently investigating Bernard Arnault, the CEO of LVMH (Louis Vuitton Moët Hennessy), in connection with financial transactions involving Russian oligarch Nikolai Sarkisov. This investigation comes after reports by France’s Tracfin financial intelligence unit, which revealed that Sarkisov had purchased real estate at an Alpine resort with the assistance of a loan from Arnault.
The Paris prosecutor’s office confirmed the existence of a preliminary investigation initiated in 2022, triggered by the Tracfin report, which raised concerns about potential money laundering activities involving Bernard Arnault and Nikolai Sarkisov. It’s important to note that a preliminary investigation does not imply guilt, and Arnault’s close associate stated that the transaction was conducted in accordance with French law.
Bernard Arnault is the founder, CEO, and chairman of LVMH, the world’s largest luxury goods company, and is counted among the world’s wealthiest individuals. Earlier, he lost a legal case against French tax investigators regarding the legality of a 2019 raid on LVMH’s headquarters, which was related to a tax fraud probe associated with activities in Belgium.
Nikolai Sarkisov holds a prominent position in his brother Sergey’s Russian insurance company, RESO-Garantia. However, the deputy CEO of RESO-Garantia, Igor Ivanov, clarified that neither the company nor Nikolai Sarkisov had direct involvement in the real estate transaction. Ivanov explained that the transaction was managed by a specialized investment unit focused on European real estate. It involved the acquisition of apartments in an older building in Courchevel from various private owners, with the intention of selling them to a developer once the entire building was purchased. All aspects of the transaction were conducted through French companies, French notaries, and French lawyers, making it a standard real estate deal. Neither RESO-Garantia nor Sarkisov had received any document requests from French authorities in connection with this matter.
For full original article on CNBC, please click here: https://www.cnbc.com/2023/09/29/lvmh-boss-bernard-arnault-under-investigation-in-paris-over-oligarch-transactions.html
