Federal prosecutors have taken legal action to seize two luxury apartments in New York City, valued at $14 million, that are believed to have been purchased with funds from a corrupt scheme involving Mongolia’s significant copper mine, former Prime Minister Sukhbaatar Batbold, and his Harvard Business School graduate son. The lawsuit, filed in U.S. District Court in Brooklyn, outlines a series of allegedly improper contracts worth a total of $128 million that were awarded by a Mongolian state-owned mining company to shell companies. These contracts reportedly benefited Prime Minister Batbold and his family, including his eldest son.
During Batbold’s time as Prime Minister, Erdenet Mining Corporation introduced an intermediary with close ties to Batbold into its dealings with the commodity trading firm Ocean Partners. This arrangement allegedly enabled Batbold to divert millions of dollars for personal use, including the acquisition of the Manhattan luxury apartments mentioned in the lawsuit. Batbold, who served as prime minister from 2009 to 2012 and is currently a member of the Mongolian parliament, has come under scrutiny for his involvement in these financial transactions.
The lawsuit also highlights the role of Batbold’s son, Battushig Batbold, in the alleged corruption scheme. Funds linked to a suspicious $30 million contract from Erdernet Mining reportedly made their way to a U.S. bank account controlled by the younger Batbold. Wire transfers associated with this transaction referenced 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 held positions at prestigious firms such as Blackstone and Morgan Stanley.
In response to the lawsuit, attorney Orin Snyder of the Gibson Dunn law firm, representing Sukhbaatar Batbold and Battushig Batbold, issued a statement denying the allegations. Snyder asserted that similar claims against his clients had been dismissed in previous court cases worldwide, characterizing them as part of a misinformation campaign aimed at manipulating Mongolian democracy. He expressed confidence that Batbold would have the opportunity to prove his innocence in a court of law.
Overall, the case involving the luxury NYC apartments sheds light on the intricate web of corruption and financial impropriety that can occur in international business dealings. It serves as a reminder of the importance of transparency, accountability, and ethical conduct in both public and private sectors.