Mongolian Ex-Prime Minister’s Luxury NYC Apartments Seized in Alleged Corruption Case

## Title: "Mongolian Ex-Prime Minister's Luxury NYC Apartments Seized in Alleged Corruption Case"

The United States Department of Justice (DOJ) unveiled a civil complaint on Monday, May 10, 2021, seeking the forfeiture of two New York City apartments worth $14 million. The luxury real estate, located at:

1. 21 East 61st Street,
2. 230 West 56th Street,

were purchased using ill-gotten gains from unlawfully awarded Mongolian mining contracts, as per the court documents.

## Announcement of Forfeiture Action

The following officials made announcements regarding the forfeiture action:

- **United States Attorney for the Eastern District of New York, Breon Peace**
- **Principal Deputy Assistant Attorney General, Nicole M. Argentieri from the Justice Department's Criminal Division**
- **James Smith, Assistant Director-in-Charge of the FBI's New York Field Office**

> _Quotes from the officials:_

> "As alleged, former Mongolian Prime Minister Batbold misused public funds and purchased high-end real estate in violation of U.S. federal law. Today's action demonstrates that those engaged in corrupt practices will not be able to conceal the profits of their crimes in our real estate market." – United States Attorney Peace

> "Sukhbaatar Batbold, the former prime minister of Mongolia, is accused of abusing his position to profit from the sale of his country's natural resources. He and his family allegedly used proceeds from their corrupt scheme to buy luxury apartments in the United States." – Principal Deputy Assistant Attorney General Argentieri

> "Former Mongolian Prime Minister Sukhbaatar Batbold is suspected of orchestrating a corruption scheme, transferring millions of dollars from mining contracts to shell companies to finance his family’s extravagant lifestyle. Today's action emphasizes the FBI's dedication to rooting out public corruption and penalizing individuals who utilize the U.S. banking system to illegally divert resources." – FBI Assistant Director-in-Charge Smith

## Allegations of Corruption

The civil forfeiture complaint alleges the following:

- Batbold, while serving as Mongolian Prime Minister, awarded a mining contract worth $68 million to Catrison, an entity he owned through intermediaries.
- Catrison lacked operational history, mining expertise, and logistical infrastructure before being awarded the contract.
- Despite this, millions of dollars from the mining contracts were covertly rerouted into foreign bank accounts, moved through a sequence of shell companies, and ultimately used to purchase the New York City apartments for Batbold's family.

Additionally, the complaint discloses that Batbold and his family:

- Utilized state-owned mining contracts to funnel funds via shell companies for their personal use.
- Awarded mining contracts worth $30 million to these sham companies, with no operational history or experience in commodities.
- Directed proceeds to a U.S. account held by Batbold's eldest son, meant for personal expenses like car payments, travel, and interior design.

## Collaborative Handling of the Case

The case is being managed by the Business and Securities Fraud Section of the U.S. Attorney's Office for the Eastern District of New York, in collaboration with the Office's Bank Integrity Task Force and the Kleptocracy Asset Recovery Initiative of the Criminal Division's Money Laundering and Asset Recovery Section.

Assistant U.S. Attorneys Tara McGrath, Brian Morris, and Trial Attorney Adam J. Schwartz are overseeing the case, along with Paralegal Specialist Jacob Menz. The Justice Department's Office of International Affairs also provided assistance.

## Important Note

_It's crucial to emphasize that a civil forfeiture complaint is simply an allegation that money or property was involved in or represents the proceeds of crime, and these allegations have not been proven in court._