Justice Department Targets $14M NYC Apartments in Mongolian Corruption Money Laundering Case

The U.S. Justice Department filed a civil forfeiture complaint with the Eastern District Court of New York on March 26, 2024. The complaint claims two New York City apartments were bought for $14 million. The money came from an international corruption scheme. Now, these properties might be forfeited due to violations of federal money laundering laws.

A Profit from Natural Resources Misuse

Head of the Justice Department's Criminal Division, Principal Deputy Assistant Attorney General Nicole M. Argentieri, accused Mongolia's ex-Prime Minister Sukhbataar Batbold of abusing his position. She claimed he capitalized on his position to profit from his nation's natural resources. Through these illicit gains, Batbold and his family purchased high-end U.S. real estate worth 14 million dollars, the same property now targeted for forfeiture.

Charges Against Sukhbaatar Batbold

Allegations against Sukhbaatar Batbold, a former Prime Minister and current member of Mongolia's parliament, suggest he manipulated his Prime Ministerial role. The complaint asserts he awarded valuable contracts for selling copper concentrates from a state-controlled Mongolian mine to entities owned and closely tied to him. These entities, often connected to his son, were typically inexperienced in the copper trade. They neither financed the purchase of copper concentrates nor were involved in managing the sale or shipments. They mainly served to hide the violation of Mongolian anti-corruption laws by the Batbold family.

Using Real Estate As Cover for Corruption

United States Attorney Breon Peace for the Eastern District of New York echoed the allegations. He accused former Mongolian prime minister Batbold of using luxurious New York real estate as a veil for his unlawful corruption activities.

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Justice Department's Pursuit against Corruption

All the while, Batbold was still serving as Mongolian Prime Minister. He allegedly used underhanded funds and a complex money laundering setup to buy the two fancy apartments in New York. Michael Nordwall, Assistant Director of the FBI's Criminal Investigative Division, was outspoken in the role the bureau intends to play in uncovering assets gained via corruption, however camouflaged.

Investigation Underway by International Corruption Squad

The FBI's International Corruption Squad in New York is investigating the issue. Deputy Chief Adam J. Schwartz leads the Kleptocracy Asset Recovery Initiative of the Criminal Division's Money Laundering and Asset Recovery Section. Assistant U.S. Attorneys Tara McGrath and Brian Morris for the Eastern District of New York are handling the case.

Justice Department Working to Recover Corrupt Assets

The Justice Department's Office of International Affairs has provided assistance. The Kleptocracy Asset Recovery Initiative, championed by a devoted team of prosecutors from the Criminal Division's Money Laundering and Asset Recovery Section in collaboration with federal law enforcement agencies, works relentlessly to confiscate the proceeds from foreign official illegal activities. In appropriate cases, the recovered assets are used to support the victims impacted by these acts of corruption and abuse of power.

Drive Against Corruption Stepping Up

In 2015, the FBI set up International Corruption Squads across the nation. This action aimed to tackle foreign corruption operations' national and international ramifications. The FBI and federal law enforcement invite individuals with information about probable proceeds of foreign corruption, either located in the United States or laundered through it, to reach out and assist in the ongoing fight against corruption.

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Justice Department, Targets $14M NYC Apartments, Mongolian Corruption Money Laundering Case

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