Federal prosecutors have taken legal action to seize two luxurious New York City apartments worth $14 million that are believed to have been purchased with funds derived from a corrupt scheme involving Mongolia’s substantial copper mine, a former prime minister, and his Harvard Business School graduate son. The lawsuit, filed in U.S. District Court in Brooklyn, outlines a series of allegedly unlawful contracts totaling $128 million that were awarded by a Mongolian state-owned mining company to shell companies linked to then Prime Minister Sukhbaatar Batbold and his family, including his eldest son.
The lawsuit alleges that during Batbold’s time as Prime Minister, he arranged for a middleman with connections to him to be involved in the relationship between Erdenet Mining Corporation and Ocean Partners. This arrangement supposedly allowed Batbold to divert millions of dollars for his personal use, including the purchase of the Manhattan apartments. Batbold held the position of prime minister from 2009 to 2012 and currently serves as a member of the Mongolian parliament.
Another aspect of the corruption scheme involves an illicit $30 million contract from Erdernet Mining, with the funds being wired to a U.S. bank account controlled by Batbold’s eldest son, Battushig Batbold. The wire transfers were disguised as various expenses such as “car payment,” “trips and travel,” “school payment,” and “interior designer payment.” Battushig Batbold, a Harvard Business School graduate and member of the International Olympic Committee, has also worked at prestigious firms like Blackstone and Morgan Stanley.
In response to the lawsuit, attorneys representing Sukhbaatar Batbold and Battushig Batbold have denied the allegations, stating that similar claims were previously dismissed in other courts. The legal team argues that these accusations are part of a misinformation campaign orchestrated by their clients’ adversaries to influence Mongolian democracy. They express confidence that the truth will be revealed in court and that Mr. Batbold will have the opportunity to refute the unfounded claims made against him.
This case underscores the far-reaching consequences of corruption and the importance of holding individuals, regardless of their status or background, accountable for their actions. It serves as a reminder of the need for transparency, integrity, and ethical conduct in government and business dealings to prevent such unlawful activities from occurring in the future.
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