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 connected to Mongolia’s significant copper mine. The lawsuit, filed in U.S. District Court in Brooklyn, exposes a series of alleged illegal contracts totaling $128 million that were awarded by a state-owned Mongolian mining company to shell companies. These contracts ultimately benefited former Mongolian Prime Minister Sukhbaatar Batbold, as well as his family, including his Harvard Business School graduate son.
Detailed in the lawsuit is the claim that while serving as Prime Minister, Batbold facilitated the placement of an intermediary with close ties to him into the relationship between Erdenet Mining Corporation and Ocean Partners. This arrangement allowed Batbold to divert millions of dollars for personal use, including the acquisition of luxurious Manhattan properties. Batbold, who held the position of Prime Minister from 2009 to 2012, is currently a member of the Mongolian parliament.
The legal action also highlights questionable financial transactions linked to another suspicious contract worth $30 million from Erdernet Mining. Funds from this contract reportedly ended up in a U.S. bank account controlled by Batbold’s eldest son, Battushig Batbold. The money was transferred using descriptions such as “car payment,” “trips and travel,” “school payment,” and “interior designer payment.” It is worth noting that Battushig Batbold, who is a Harvard Business School graduate, has significant professional experience in prestigious firms like Blackstone and Morgan Stanley.
In response to the allegations, Sukhbaatar Batbold and Battushig Batbold are being represented by the Gibson Dunn law firm. Attorney Orin Snyder emphasized that similar claims were previously debunked in courts globally, portraying them as part of a larger disinformation campaign aimed at influencing Mongolian political processes. Snyder expressed confidence in his clients’ ability to refute the unfounded accusations and eagerly await their opportunity to defend themselves in court. The legal battle surrounding the seized assets and alleged corruption is expected to unfold in the coming months.
Overall, the lawsuit sheds light on a complex web of illicit activities involving high-profile individuals and substantial financial transactions, underscoring the importance of robust regulatory oversight and accountability measures in preventing and combating corruption at both domestic and international levels.