The United States government has announced plans to auction off a luxurious mansion in Los Angeles, California, following a civil forfeiture settlement against the family of Gagik Khachatryan, a former Armenian politician. The 11-bedroom, 27-bathroom French chateau-style mansion, located in the exclusive neighborhood of Holmby Hills, will be sold at the highest obtainable market price.
The 33,652-square-foot property, situated just a few doors down from the Playboy Mansion, was owned by Khachatryan’s sons, Artyom and Gurgen Khachatryan. The settlement stipulates that the U.S. government will retain 85% of the net proceeds from the sale, with the remaining amount delivered to the Khachatryan brothers and their corporation.
According to the government, the mansion was allegedly used to launder bribes. In 2011, a trust benefiting Khachatryan’s sons purchased the property for $14.4 million, with funds provided by a prominent Armenian businessman named Sedrak Arustamyan. The government claims that the funds were actually loans extended without repayment, serving as covers for bribe payments.
The Khachatryan brothers’ attorney, Ephraim Wernick, released a statement asserting that his clients have agreed to resolve the claims without admitting any wrongdoing. Wernick further emphasized that the brothers vehemently deny any involvement in illicit activities related to the purchase and ownership of the property. He labeled the case as politically motivated and based on false accusations.
The saga surrounding the mansion began in 2016 when the alleged bribery scheme came to light after Khachatryan left office. Authorities discovered millions of dollars in unpaid taxes owed by Arustamyan’s companies. In 2019, Khachatryan was charged with abuse of power and embezzlement, while his sons and Arustamyan faced charges in 2020. The Khachatryan family is currently engaged in discussions with the Armenian government to resolve the matter.
The Holmby Hills property, known as “Le Chateau de Mapleton,” was listed for sale in April 2022 for $63.5 million. However, it was later relisted for just under $40 million. The mansion boasts an array of luxurious amenities, including a lounge, billiard room, poker room, movie theater, gym, wine lounge, two-story library, steam room, massage room, salon, spa lounge, multiple bars, indoor and outdoor pools, and a garage for eight or more cars.
The sale of the mansion may be impacted by L.A.’s “mansion tax,” which imposes a 4% charge on property sales above $5 million and a 5.5% charge on sales exceeding $10 million. The proceeds from this tax fund affordable housing and homelessness initiatives.
