Ex-Mongolian Prime Minister Batbold Faces Allegations of Corporate Fraud in New York
Contents
Background 📅
Sukhbaatar Batbold, the former Prime Minister of Mongolia (2009-2012), is under investigation for using tainted funds from a corrupted mining deal to purchase two luxury apartments in New York City worth $14 million.
The Allegations 🔢
Manhattan Properties and Tainted Funds
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Batbold and his legal team, led by Orin Snyder, have pledged to defend against the allegations of using mining proceeds from dubious deals to buy two luxury apartments:
- One at The Carlton House on East 61st Street
- A condo unit in The Park Imperial, close to Central Park and Carnegie Hall.
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The US authorities, including the Department of Justice (DOJ), claim the funds were “funneled through illegitimate shell companies to finance [Batbold’s] family’s lavish lifestyle.”
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No charges have been filed against Batbold personally; the apartments could be subject to forfeiture if the court agrees with the prosecution’s claims.
Corruption in Mongolia’s Mining Sector 🤝
- The mining sector, a significant part of Mongolia’s economy, faces persistent allegations of corruption.
- In late 2022, widespread protests took place in the capital, Ulaanbaatar, alleging embezzlement of billions of dollars from coal exports to China, dubbed the “coal mafia.”
The Disputed Mining Contract 📋
- It is alleged that Batbold controlled a mining firm, Catrison, which won a $68 million mining contract in 2010.
- Catrison had no existing mining operations or previous industry experience, and its sole director was a former linguistics teacher.
Siphoned Funds and Shell Companies 🏦
- The DOJ alleges that millions of dollars from the mining contract and others were moved through foreign bank accounts and shell companies before reaching the prime real estate.
- Batbold’s eldest son has reportedly used one of the apartments as his US postal address.
FBI’s Response 🕵️♂️
- Assistant director-in-charge of the FBI in New York, James Smith, slammed Batbold’s actions, stating, “Batbold’s alleged behavior—personally profiting off of public corruption—comes at the expense of the law-abiding citizens he governed.”
Reactions and Concerns 💭
- Batbold’s team maintains his innocence and vows to defend him in court.
- This developing story underscores concerns about corruption in Mongolian mining, an issue for local citizens and global investors alike.
- Further court proceedings are expected to provide more clarity in the case.