LVMH CEO Bernard Arnault Calls Money Laundering Reports ‘Absurd’

The CEO of luxury conglomerate LVMH reportedly dismissed money laundering allegations against him.

The Paris prosecutor’s office said it is undertaking a preliminary investigation into financial transactions between Bernard Arnault and Russian oligarch Nikolai Sarkisov, CNBC reported Monday (Oct. 2). The transactions — involving the Hotel Cheval Blanc — had the appearance of money laundering.

Spokespeople for Arnault — the world’s second-richest person – and Sarkisov, a senior executive at Russian insurance company RESO-Garantia, have denied any wrongdoing, per the report.

Arnault’s attorney, Jacqueline Laffont, said the allegations were “absurd and unfounded,” according to the report.

“The transaction that allowed for the expansion of the Hotel Cheval Blanc in Courchevel is perfectly known and was conducted in accordance with the law and with legal support,” she said. The investigation, seemingly underway, will demonstrate these facts. Furthermore, who could seriously imagine that Bernard Arnault, who has developed over the past 40 years the leading French and European company, would pursue money laundering to expand a hotel? I believe the senseless nature of these allegations will be recognized by all.”

A report last week by France’s Le Monde newspaper claimed Sarkisov bought several properties in Courchevel in 2018 via intermediary companies, with Arnault as the ultimate buyer for those properties, Bloomberg reported Saturday (Sept. 30).

The investigation alleged Arnault paid Sarkisov approximately $21.2 million for the properties with Sarkisov making a 10% profit, Bloomberg reported, citing Le Monde. Authorities hope to determine if the transactions were designed to conceal the funds and the identity of the ultimate buyer.

At the start of the year, LVMH briefly traded at over 800 euros (about $840) per share, boosting the company’s market capitalization to 400 billion euros (about $420 billion) for the first time and making the company Europe’s most valuable business.

Arnault had been the world’s richest person for a time, supplanting Tesla/X/Starlink head Elon Musk. (The two have since swapped places for the No. 1 and No. 2 spots).

Luxury goods proved resilient last year, even as other retailers struggled. However, LVMH Chief Financial Officer Jean-Jacques Guiony in July reported a drop in sales, which he attributed to a reduction in spending by aspirational consumers on entry-level products.

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