U.S. Discontinues Criminal Proceedings Against the Family of Former Armenian Finance Minister Gagik Khachatryan

The U.S. court has ceased the criminal proceedings against the family of former Armenian Finance Minister Gagik Khachatryan. This announcement was made today by the Khachatryan family's legal team.

The legal team released a statement from the reputable international law firm Vinson & Elkins, which characterized the resolution as favorable. According to the statement, after nearly two years of investigation in the U.S., no violations by the Khachatryans were discovered or confirmed, including allegations regarding the acquisition of real estate in the Holmby Hills neighborhood of California through illegal means.

The statement also noted that, considering the lengthy process and the significant losses incurred by the Khachatryans' business during this period, an agreement has been reached regarding the alienation of the property between the Khachatryans and the U.S. government.

The legal team views the Department of Justice's decision to discontinue the criminal proceedings as a significant victory for the Khachatryans, which resolves their legal dispute with the department regarding the property in Holmby Hills, which had been under construction since 2011.

It was pointed out that the Khachatryan family has been targeted by the new Armenian authorities since 2018. In January 2022, the Khachatryans put the aforementioned Holmby Hills property up for sale, notifying the government of this action. By April, the U.S. Department of Justice had received a claim from the Armenian government regarding the confiscation of the Holmby Hills property.

“After more than two years of investigation, the Department of Justice officially notified that it will cease the investigation against the Khachatryans on June 11, 2024. It has been decided that the Holmby Hills property will be sold, and the proceeds will be distributed between the parties. Furthermore, a portion of the proceeds from the sale of the Holmby Hills property will be allocated to the Khachatryans, while the other portion, at the Khachatryans' request, will be provided to the Republic of Armenia for the benefit of the Armenian people,” the announcement stated.

The mansion, listed for sale at $39,750,000, covers an area of 3,126 square meters.

It should be noted that in a separate case regarding the confiscation of assets of illegal origin currently being heard by the Anti-Corruption Court of Armenia, former Finance Minister Gagik Khachatryan and 25 related individuals (including his sons Gurgen and Artyom Khachatryan) are being demanded the confiscation of 210 real estate properties, 13 vehicles, shares in 29 legal entities, as well as over 33 billion drams.