The American mansion of the sons of former Armenian Finance Minister Gagik Khachatryan has finally been sold. The transaction took place two weeks ago.

The American government, based on allegations it was purchased with bribes paid to their father, had seized the property in July 2024.

The house in the expensive Holmby Hills neighborhood of the Westwood district of Los Angeles (address: 530 South Mapleton Drive) was built by Gurgen and Artyom Khachatryan in 2017 after they razed a mansion on the site built in 1927. They had acquired the latter with its land in 2011 for $14.4 million.

The total area of ​​the real estate owned by the sons of a former high-ranking official is 5,224 square meters, and the area of ​​​​the new mansion is 3,126 square meters.

The two-story villa has eleven bedrooms, 27 bathrooms/toilets, a dining room, a family room, servants' quarters, a home theater, a library, a media/music room, a recreation room, an office, a wine cellar, a basement, a garage, a laundry room, and a swimming pool in the yard.

The mansion had been for sale since 2022

Although the house was unfinished and no interior decoration has been done, the Khachatryans put the property up for sale in April 2022 for $63.5 million.

In May 2022, the U.S. Department of Justice, which is headed by the country's attorney general, filed a lawsuit in the Central District Court of California to seize the Khachatryans' property. American prosecutors defended the lawsuit. The American government claimed the Khachatryans had acquired the property in 2011 through illegal means.

At issue was the $22,401,000 given to the Khachatryans in 2011 by Sedrak Arustamyan, General Director of Armenian businessman Gagik Tsarukyan's Multi Group Concern. Armenian and American law enforcement officials considered the money a bribe (to obtain favorable treatment from the State Revenue Committee headed by Gagik Khachatryan at the time), while Arustamyan and the Khachatryans called it a loan.

Prosecutors had filed a notice with the Los Angeles County Registrar’s Office in California stating that there was a lawsuit against the mansion that was being sold. This signified that the Khachatryans could sell their house, meaning it was not under foreclosure, but if the court decided to grant the prosecutors’ claim and seize the house, the buyer who purchased the house from the Khachatryans would face this fact.

Against this backdrop, a buyer for the house appeared in June 2022. The Khachatryans' house, which was listed for sale, was listed as "under contract," "active under contract," or "accepting backup offers," which meant that the sons of the former finance minister had reached an agreement with a potential buyer, but it was not final, meaning that those wishing to purchase the property could submit their price offers.

However, in early November 2022, the house was taken off the market, but by the end of the same month it was back on the market. This time, the Khachatryans had reduced the price by $7.5 million, to $56 million. However, no buyer appeared.

In August 2023, the price of the house was reduced a second time, this time by $9.5 million, to $46.5 million. No buyers were interested this time too.

In November 2023, the house was again taken off the real estate market, but in December it was put back on the market. The new price was set at $39,750,000.

The U.S. Justice Department, Khachatryans reach an agreement

Armenia’s Prosecutor General’s Office, in July 2024, issued a statement regarding the house. Accordingly, on June 14, Gurgen and Artyom Khachatryan filed a request with the U.S. District Court to reach an agreement on the seizure of the property, which was accepted for proceedings by the court, and the agreement was approved by the court’s decision of June 30.

“According to the court’s decision, the mansion in Los Angeles, which is considered property of criminal origin and belongs to the family of the former Minister of Finance of the Republic of Armenia Gagik Khachatryan, will be seized and sold at the highest market value,” Armenia’s Prosecutor General’s Office announced. “Negotiations are underway between the Prosecutor General’s Office and the U.S. competent authority on the issue of returning the majority of the funds received as a result of the sale of the mansion to the Republic of Armenia.”

Not long after, Vinson & Elkins, the firm representing the Khachatryan brothers in the United States, announced that the U.S. Department of Justice had terminated its investigation into the Khachatryans on June 11, 2024.

“Based on the decision to terminate the investigation and suspend the foreclosure case, the Department of Justice and the Khachatryans have reached an agreement to also resolve the issue of outstanding obligations in the foreclosure case. It has been decided that the Holmby Hills real estate will be sold, and the proceeds will be distributed between the parties. In addition, part of the proceeds from the sale of the Holmby Hills property will be provided to the Khachatryans, and the other part, at the request of the Khachatryans, will be provided to the Republic of Armenia for the benefit of the Armenian people,” the Khachatryans’ lawyers announced.

Who bought the Khachatryans’ house?

When the agreement to seize the property was obtained, it was offered on the market for $39,750,000, but as we learn from American open real estate sales platforms, on January 7, the Khachatryan mansion was sold “slightly” cheaper, for $36,000,000.

The buyer is the American Onni 530 S Mapleton LLC, which is registered in the U.S. state of Delaware. This state is a so-called tax haven or offshore zone. The company was founded in 2022, but since the name contains the address of Khachatryan’s former home (530 South Mapleton Drive), it can be assumed that the Delaware company was renamed with the home's address in the context of acquiring the expensive mansion in Los Angeles.

Moreover, Onni 530 S Mapleton LLC has a California branch, which was registered on December 5, 2024, just days before the purchase of the Khachatryans house. It can’t be ruled out that it was opened for a specific purpose - to conduct the purchase transaction of the villa and/or to manage and dispose of the house.

Onni 530 S Mapleton LLC has its roots in the Canadian city of Vancouver. This is no coincidence, since it is one of the companies that is part of the Canadian Onni Group. This group, which operates in the real estate sector, was founded by Innocenzo De Cotiis, a businessman with Italian roots, a multimillionaire. Onni Group has implemented construction projects and manages real estate in the U.S. cities of Los Angeles, Seattle, Chicago, Phoenix, as well as in the Canadian cities of Toronto and Vancouver.

$14 million of the $36 million purchase price for the Khachatryans' house is a loan.

In addition, the house was assessed at $36,788,587 in 2024, based on which $444,000 in property tax was calculated (this assessment is for tax purposes only and differs from the market value of the property).

In fact, the price paid by the Canadian investors does not differ much from the assessed value of the property. On the other hand, it should be noted that the estimates of various American real estate websites regarding the market value of the Khachatryans' former house are also near to the transaction price of $36 million.