US to seize $63m Los Angeles mansion it claims was bought with bribe money

The US government wants to seize a mega-mansion in an exclusive area of Los Angeles that it claims was bought with millions in bribe money linked to the former finance minister of Armenia and his sons.

It was put on the market last month with an asking price of $63.5m, according to the federal complaint, filed this week by the US Department of Justice.

The complaint states that the US government is seeking the forfeiture of the 33,652 sq foot (3,126 sq meter) mansion, located in Holmby Hills, because it was allegedly bought illegally with bribe money paid by an Armenian businessman to Gagik Khachatryan, a former high ranking Armenian politician.

According to the complaint, the house was bought for $14.4m in 2011 by a trust on behalf of Khachatryan and his two sons, who are all facing criminal charges in Armenia.

The case is under investigation by the FBI.

The US government contends that wealthy and influential businessman Sedrak Arustamyan, who also is charged in Armenia, paid Khachatryan and his family more than $20m in bribes in exchange for favorable tax treatment of his businesses, and that some of that money went into buying the Holmby Hills estate.

The listing agent behind the property is reportedly still looking for a buyer.

The Associated Press contributed reporting