Second Richest Person, Louis Vuitton's Bernard Arnault Under Scrutiny Over Suspected Money Laundering

LVMH Moet Hennessy Louis Vuitton SE's LVMHF CEO Bernard Arnault is under investigation by the Paris public prosecutor's office. 

The probe centers around financial transactions involving Russian oligarch Nikolai Sarkisov, as French newspaper Le Monde reported and confirmed by France's Tracfin financial intelligence unit.

Arnault is being scrutinized for a transaction in which Sarkisov allegedly bought real estate at an Alpine resort, assisted by a loan from Arnault. 

The investigation has been underway since 2022, indicating a possible linkage to acts of money laundering.

Also Read: Ozempic Maker Beats Bernard Arnault's LVMH As Europe's Most Valuable Firm With Stunning $423B Market Cap.

In February, Arnault faced a loss against French tax investigators in a high court case. 

The case was connected to a 2019 raid on LVMH's headquarters, tying back to a tax fraud investigation related to activities in Belgium. 

However, a close associate of Arnault defended that the deal under the current investigation was executed within the boundaries of French law.

In summary, the legal and business communities will watch closely as the investigation against Bernard Arnault and Nikolai Sarkisov continues. 

The outcome could have significant implications not only for the individuals involved but also for the reputation and future of LVMH.

As the investigation unfolds, 74-year-old Arnault is in the process of transitioning the leadership of his empire. 

Citing Bloomberg Intelligence, The Guardian notes Arnault's fortune is estimated to be worth $164 billion, and at one point, it made him the world's richest man on paper. 

He and his family own 41% of LVMH, which owns luxury brands, including the handbag brand Louis Vuitton, Moët champagne, Hennessy cognac, the jeweler Tiffany's, and the watchmaker Tag Heuer, among many others.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.