Paris Investigating LVMH CEO Bernard Arnault for Oligarch Transactions: What You Need to Know

The Paris public prosecutor’s office is currently investigating the CEO of LVMH, Bernard Arnault, regarding financial transactions involving Russian oligarch Nikolai Sarkisov.

A report from France’s Tracfin financial intelligence unit, cited by French newspaper Le Monde, revealed that Sarkisov obtained real estate at an Alpine resort with the assistance of a loan from Arnault.

In 2022, the Paris prosecutor’s office initiated a preliminary investigation after receiving a Tracfin report that raised concerns about potential money laundering activities involving Bernard Arnault and Nikolai Sarkisov.

The prosecutor’s office has refrained from providing further details on the ongoing investigation. It should be noted that a preliminary investigation does not automatically imply guilt, and a close associate of Arnault emphasized that the transaction adhered to French legal regulations.

Bernard Arnault, who is the founder, CEO, and chairman of LVMH, the world’s largest luxury goods company, recently lost a legal case against French tax investigators. The case revolved around the legality of a raid conducted at LVMH’s headquarters in 2019, as part of a tax fraud investigation related to activities in Belgium.

Nikolai Sarkisov, an individual associated with his brother Sergey’s Russian insurance company, RESO-Garantia, has denied any involvement in the transaction. According to RESO-Garantia Deputy CEO Igor Ivanov, the transaction was managed by a small investment unit specialized in European real estate. The deal focused on purchasing flats in an old building in Courchevel from multiple private owners, with the intention of selling them to a developer in the future. All transactions were conducted through French entities and professionals, adhering to the standard procedures of a real estate deal.

Ivanov confirmed that neither RESO-Garantia nor Sarkisov have received any document requests from French authorities regarding this matter.

LVMH provided a statement from Jacqueline Laffont, Arnault’s lawyer, who dismissed the allegations of money laundering as baseless and absurd. Laffont emphasized that the expansion of the White Horse Hotel in Courchevel, which was the focus of the transaction, was conducted legally and with the support of relevant legal authorities. She expressed confidence that the ongoing investigation would ultimately acknowledge the legitimacy of the operation.

Laffont further questioned the credibility of the accusations, highlighting Arnault’s longstanding reputation as a respected business figure in France and Europe. It is inconceivable that someone of his stature would engage in money laundering to expand a hotel. She believed that anyone would recognize the senselessness of such allegations.