Federal prosecutors have filed a lawsuit in U.S. District Court in Brooklyn to seize two New York City apartments worth $14 million that were allegedly purchased with funds obtained through corruption involving Mongolia’s large copper mine. The lawsuit details $128 million in contracts that were unlawfully granted by a state-owned mining company in Mongolia to shell companies, benefiting former Prime Minister Sukhbaatar Batbold and his family, including his Harvard Business School graduate son. During Batbold’s time as Prime Minister, he allegedly used a middleman to siphon off money for personal use, including the purchase of the Manhattan luxury apartments.
Sukhbaatar Batbold served as Prime Minister of Mongolia from 2009 to 2012 and is currently a member of the Mongolian parliament. In addition to the contracts benefiting him, money linked to an illegal $30 million contract from Erdernet Mining was allegedly funneled into a U.S. bank account controlled by his son, Battushig Batbold. The funds were transferred with references to various expenses such as car payments, trips, school payments, and interior designer fees. Battushig Batbold, a Harvard Business School graduate and member of the International Olympic Committee, has also worked for companies like Blackstone and Morgan Stanley.
Representation for Sukhbaatar Batbold and Battushig Batbold from the Gibson Dunn law firm stated that the claims made in the lawsuit had been previously defeated in courts around the world. They argue that the allegations are a result of a misinformation campaign aimed at manipulating Mongolian democracy, directed by political opponents of Mr. Batbold. The attorney expressed that Batbold is looking forward to his day in court to defend himself against the unfounded claims. CNBC has attempted to obtain a response from Mongolia’s United Nations mission in New York regarding the allegations in the lawsuit.
The lawsuit filed by federal prosecutors alleges that during Batbold’s tenure as Prime Minister, he used a middleman with ties to siphon off millions of dollars from contracts with Ocean Partners, ultimately benefiting himself and his family. The funds were reportedly used for personal expenses, including the purchase of the Manhattan luxury apartments. In addition to these activities, another contract worth $30 million from Erdernet Mining allegedly resulted in funds being channeled to a U.S. bank account controlled by Batbold’s son, Battushig Batbold.
Battushig Batbold, who is a Harvard Business School graduate and a member of the International Olympic Committee, has worked at prestigious firms like Blackstone and Morgan Stanley. The lawsuit details wire transfers referencing various expenses, indicating that the funds were used for car payments, trips, school fees, and interior designer payments. The legal representation for Sukhbaatar Batbold and Battushig Batbold has denied the allegations, stating that they had successfully refuted similar claims in courts globally and attributing the accusations to political opponents attempting to undermine Batbold.
Sukhbaatar Batbold, who currently serves as a member of the Mongolian parliament, is facing allegations of using his position as Prime Minister to illicitly benefit himself and his family through corrupt schemes involving a state-owned mining company. The lawsuit filed by federal prosecutors seeks to seize assets, including two luxury apartments in New York City, valued at $14 million. Batbold’s son, Battushig Batbold, is also implicated in the allegations, with funds from illegal contracts allegedly being funneled into a U.S. bank account under his control via wire transfers referencing various expenditures.
The attorney representing Sukhbaatar Batbold and Battushig Batbold has characterized the claims as baseless and the result of a misinformation campaign aimed at influencing Mongolian politics. Batbold’s legal team asserts that similar allegations have been dismissed in courts worldwide and that the accusations are unfounded. They look forward to defending against the claims in court. CNBC has reached out to Mongolia’s United Nations mission in New York to inquire about their response to the allegations outlined in the lawsuit filed by federal prosecutors.
