Federal prosecutors have taken legal action to seize two upscale New York City apartments valued at $14 million, which are believed to have been purchased using funds obtained through a corrupt scheme linked to Mongolia’s prominent copper mine. The lawsuit, filed in U.S. District Court in Brooklyn, exposes a series of alleged illicit transactions totaling $128 million, facilitated by a state-owned Mongolian mining company, benefiting former Prime Minister Sukhbaatar Batbold and his family.
Prime Minister’s Involvement in Fraudulent Contracts
According to court documents, during his tenure as Prime Minister from 2009 to 2012, Batbold influenced the awarding of questionable contracts by Erdenet Mining Corporation to intermediary shell companies associated with his familial connections. By leveraging his position, Batbold managed to divert substantial amounts of money for personal gain, enabling him to fund extravagant purchases such as the Manhattan luxury apartments now targeted by prosecutors.
Siphoning Funds Through Offshore Accounts
One particularly disturbing revelation from the lawsuit involves a $30 million contract from Erdernet Mining that funneled funds into a U.S. bank account controlled by Batbold’s son, Battushig Batbold. The illicit transfers, falsely labeled as “car payment,” “school payment,” and other innocent-sounding expenses, enabled the family to enjoy a lavish lifestyle funded by corrupt practices.
Battushig Batbold, a graduate of Harvard Business School and member of the International Olympic Committee, has a checkered career history that raises further suspicions. With stints at financial powerhouses like Blackstone and Morgan Stanley, Batbold’s professional trajectory seems intertwined with his family’s questionable financial dealings and legacy of corruption.
In response to the lawsuit, attorney Orin Snyder defended the Batbold family against what he described as baseless allegations. Claiming that similar accusations had been debunked in previous legal battles, Snyder suggested that the case was part of a broader campaign to tarnish Batbold’s reputation and undermine Mongolian democracy. Despite mounting evidence of financial misconduct, the family remains defiant and prepared to contest the charges in court.
The scandal surrounding the acquisition of luxury New York apartments through fraudulent means underscores the far-reaching consequences of corruption within the global mining industry. As prosecutors continue to unravel the intricate web of deceit spun by the Batbold family, the case serves as a sobering reminder of the need for greater transparency and accountability in the handling of natural resources and public funds.