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Press Release

Justice Department Reaches Settlement to Recover L.A. Mansion Purchased by Family of Former Armenian Government Minister

For Immediate Release
U.S. Attorney's Office, Central District of California

LOS ANGELES – The Justice Department today announced it has reached a settlement for a civil forfeiture case against a mansion in the Holmby Hills section of Los Angeles belonging to the family of Gagik Khachatryan, a former government official in the Republic of Armenia. 

In 2011, a trust benefiting Khachatryan’s sons purchased the property with funds provided by an Armenian businessman. At the time, Khachatryan was the most senior official in charge of taxes and customs in the Republic of Armenia. The sons claimed that the funds were provided as loans by the businessman, while the United States alleged the loans, which were repeatedly extended without repayment, were covers for bribe payments. The payments are also the subject of pending criminal prosecutions in the Republic of Armenia.

Under the terms of the settlement, the mansion will be forfeited to the United States. The United States will then sell the property at the highest obtainable market price and retain 85% of the net proceeds of the sale. The remaining net proceeds of the sale will be delivered to the Khachatryan’s sons and a corporation they own. The Attorney General has the discretionary authority to transfer forfeited property to any foreign country that participated directly or indirectly in the seizure or forfeiture of the property. The offices that brought the case intend to recommend transfer of some or all the forfeited proceeds to the Republic of Armenia.

“We do not tolerate corruption in the United States and we will not allow foreign officials to use our country to facilitate their own corruption,” said United States Attorney Martin Estrada. “Our recovery of these ill-gotten gains should send a message to corrupt officials throughout the world that they will find no safe harbor here.”

The FBI’s Eurasian Organized Crime Task Force (EOCTF) and U.S. Marshals Service investigated the case. The EOCTF is composed of multiple law enforcement agencies including the FBI, IRS-Criminal Investigation, the U.S. Postal Inspection Service, the Glendale Police Department, the Los Angeles Police Department, and the Los Angeles County Sheriff's Department. The Justice Department’s Official of International Affairs, Republic of Armenia’s Prosecutor General’s Office, and Armenian investigative authorities also provided critical assistance.

Assistant United States Attorney Maxwell Coll of the Cyber and Intellectual Property Crimes Section and Trial Attorney Hunter Smith of the Criminal Division’s Money Laundering and Asset Recovery Section (MLARS) prosecuted this case.

The Kleptocracy Asset Recovery Initiative is led by a team of dedicated prosecutors in MLARS, in partnership with federal law enforcement agencies and often with U.S. Attorney’s Offices, to forfeit the proceeds of foreign official corruption. Individuals with information about possible proceeds of foreign corruption located in or laundered through the United States should contact federal law enforcement or send an email to or


Ciaran McEvoy
Public Information Officer
(213) 894-4465

Updated July 8, 2024

Asset Forfeiture
Foreign Corruption
Press Release Number: 24-162