Fri. Dec 1st, 2023

Bernard Arnault, Chairman and CEO of LVMH Moet Hennessy Louis Vuitton, attends a information convention to current the 2022 annual outcomes of LVMH in Paris, France, January 26, 2023.

Gonzalo Fuentes | Reuters

The Paris public prosecutor’s workplace is investigating LVMH CEO Bernard Arnault over monetary transactions involving Russian oligarch Nikolai Sarkisov.

French newspaper Le Monde reported Thursday, citing France’s Tracfin monetary intelligence unit, that Sarkisov had purchased actual property at an Alpine resort with the assistance of a mortgage from Arnault.

The Paris prosecutor’s workplace confirmed Friday {that a} preliminary investigation had been underway since 2022, and {that a} Tracfin report “drawing the eye of the prosecutor’s workplace to operations regarding Mr. Bernard Arnault and Mr. Sarkisov, prone to characterize acts of cash laundering, has been connected to this process.”

The prosecutor’s workplace declined to remark additional on the continuing investigations. A preliminary investigation doesn’t essentially indicate wrongdoing, and Le Monde cited an in depth affiliate of Arnault as saying the deal was carried out throughout the scope of French legislation.

Arnault, the founder, CEO and chairman of the world’s largest luxurious items firm and one of many world’s richest males, misplaced a excessive court docket case towards French tax investigators in February over the legality of a 2019 raid on LVMH’s headquarters. The raid associated to a tax fraud probe linked to actions in Belgium.

Nikolai Sarkisov is a senior determine at his brother Sergey’s Russian insurance coverage firm, RESO-Garantia.

RESO-Garantia Deputy CEO Igor Ivanov advised CNBC on Friday that neither the corporate, nor Nikolai Sarkisov personally had been concerned within the transaction, and that Sarkisov had by no means met Bernard Arnault.

“The transaction was managed by a small funding unit which invests professionally in European actual property. It consisted of buying flats in an outdated constructing in Courchevel from varied personal homeowners, with the view to promote them later to a developer as soon as the whole constructing was purchased out,” Ivanov stated in an e mail.

“All transactions have been carried out by French corporations, by means of French notaries by French legal professionals on all sides. This was a common actual property deal.”

He added that neither the corporate nor Sarkisov had obtained any request for paperwork from French authorities.

LVMH didn’t reply to CNBC’s request for remark.

Leave a Reply

Your email address will not be published. Required fields are marked *