BackFrance Probes LVMH CEO Arnault Over Deal With Russian Businessman
Prosecutors say a preliminary investigation into money laundering has been under way since 2022 into the LVMH chief.
PremiumPARIS—French prosecutors are investigating a deal between French billionaire Bernard Arnault and a Russian businessman for possible money laundering.
The Paris prosecutor’s office said Friday that its investigation follows an alert from France’s anti-money-laundering unit Tracfin, and that a preliminary probe has been under way since 2022. It declined to comment further.
Arnault is chief executive and the controlling shareholder of luxury empire LVMH Moët Hennessy Louis Vuitton, and is the world’s second-richest person after Elon Musk, according to Bloomberg Billionaires Index.
A lawyer for Arnault said the allegations were absurd and unfounded, and said that her client was willing to respond to any questions on the topic.
The prosecutors’ statement follows a report in Le Monde, which said that France’s anti-money-laundering body had detected what it considered to be suspicious money transfers between Arnault and a Russian businessman, Nikolaï Sarkisov. The dealings related to the Frenchman’s acquisition of real estate in Courchevel, located in the French Alps, in 2018. That deal left Sarkisov with an alleged profit of around 2 million euros—about $2.1 million—without any obvious justification, the French daily said, citing a Tracfin document.
Arnault’s lawyer said her client purchased the real estate with the goal of expanding the Cheval Blanc hotel in Courchevel, which is owned by LVMH. She added that the deal was carried out in compliance with the law and with the support of advisers.
Sarkisov, who made his fortune in insurance, couldn’t immediately be reached for comment.
After the preliminary probe, French prosecutors can decide to launch a formal investigation or drop the matter.
Write to Nick Kostov at nick.kostov@dowjones.com
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