Federal prosecutors have taken legal action to seize two luxury apartments in New York City, valued at $14 million, which are suspected to have been purchased with funds obtained from a corrupt scheme involving Mongolia’s prominent copper mine, a former prime minister, and his son. The lawsuit, filed in U.S. District Court in Brooklyn, outlines a series of questionable contracts amounting to $128 million, awarded by a state-owned Mongolian mining company to shell companies linked to former Prime Minister Sukhbaatar Batbold and his family.
It is alleged that during Batbold’s term as Prime Minister between 2009 and 2012, the Erdenet Mining Corporation facilitated the insertion of a middleman with ties to Batbold into their dealings with the commodity trading firm, Ocean Partners. This arrangement allegedly enabled Batbold to divert millions of dollars for personal use, including the acquisition of the upscale Manhattan apartments now subject to seizure. Notably, another suspicious contract worth $30 million from Erdernet Mining was funneled into a U.S. bank account controlled by Batbold’s son, Battushig Batbold, through wire transfers mislabeled as “car payment,” “trips and travel,” “school payment,” and “interior designer payment.”
Professional Background of the Involved Parties
Battushig Batbold, the eldest son of the former Prime Minister, holds a business degree from Harvard Business School and is affiliated with prestigious organizations such as the International Olympic Committee. His professional history includes stints as a summer associate at Blackstone in 2014 and a mining analyst at Morgan Stanley from 2009 to 2011. Despite the serious allegations brought against them, Sukhbaatar Batbold and Battushig Batbold are supported by legal counsel from the Gibson Dunn firm, led by attorney Orin Snyder, who maintains that previous accusations against the defendants were part of a strategic disinformation campaign aimed at undermining Mongolian democracy.
In response to the lawsuit, Orin Snyder expressed confidence that the claims against his clients will be refuted in court, emphasizing that the legal proceedings are an opportunity for Sukhbaatar Batbold to defend himself against what he deems as baseless accusations. The unfolding case sheds light on the intricate web of corruption allegedly involving high-ranking officials and family members in Mongolia, sparking concerns about the misuse of public funds for personal gain. As the legal battle unfolds, the transparency and accountability of government officials in managing national resources come under scrutiny, highlighting the need for robust oversight and anti-corruption measures.