French billionaire Bernard Arnault and Russian oligarch Nikolai Sarkisov are under investigation for alleged money laundering at a luxury Alpine resort.
The investigation focuses on dealings in Courchevel, a French Alps ski resort renowned for attracting the wealthy elite.
Late Thursday, it was revealed that the French economy ministry‘s financial intelligence unit is heading this probe. As of now, it remains undetermined if any illicit actions took place, according to an insider.
French newspaper Le Monde disclosed that a 55-year-old Russian billionaire bought 14 housing units in 2018 for €16 million ($17 million) in a multifaceted transaction with entities in France, Luxembourg, and Cyprus. The billionaire, Sarkisov, is not directly listed in the purchasing company’s records.
The purchasing firm, named La Fleche, also reportedly acquired three other properties from another firm, which surprisingly, is also linked to Sarkisov. This self-dealing reportedly enabled Sarkisov to gain a capital benefit of €1.2 million.
Bernard Arnault, head of luxury conglomerate LVMH and currently the world’s second wealthiest individual as per Forbes (trailing only Elon Musk), is alleged to have lent €18.3 million to Sarkisov for the property deals.
Subsequently, it seems Arnault took over La Fleche, thus effectively owning the real estate assets.
Le Monde suggests that this change in ownership might have been structured to obscure the actual source of the investment, as well as the final beneficiary’s identity. The probe hints at Sarkisov profiting by €2 million from this arrangement, though the specifics of the loan remain unclear.
However, a spokesperson cited by Le Monde has affirmed that the entire operation complied with the law. Those close to Sarkisov have minimized the capital gains and denied his direct involvement.
The newspaper also mentions Arnault’s fond connection with Courchevel, where he learned skiing and possesses significant properties. Notably, some hotel rates in the resort can skyrocket to tens of thousands of euros per night.
