U.S. Seeks Seizure of Mansion Tied to Mansour Barzani in Alleged $700 Million Fraud Scheme

Peregraf — The U.S. Department of Justice (DOJ) filed a civil forfeiture complaint on April 22, 2026, seeking the seizure of a Beverly Hills mansion allegedly purchased and renovated with proceeds from a scheme to defraud the U.S. military and bribe a senior official in the Kurdistan Region of Iraq.

According to the complaint filed in the U.S. District Court for the Central District of California, the property was acquired using approximately $30 million in proceeds from a corrupt scheme involving a Virginia-based defense contractor. The DOJ alleges the scheme targeted the U.S. Department of Defense’s Defense Logistics Agency (DLA) and involved violations of U.S. money laundering laws.

Mansour Barzani, a senior official in the Peshmerga Forces, is the brother of KRG Prime Minister Masrour Barzani and the son of former President Masoud Barzani.

The complaint alleges that between 2016 and 2020, the contractor and other individuals obtained more than $700 million from the DLA for fuel deliveries during Operation Inherent Resolve (OIR). During this timeframe, Erbil International Airport (EIA)—where Peshmerga Forces controlled security and facility access—served as a vital hub for fuel used by the U.S. military in Iraq and Syria. This period of operations also intersected with the broader regional context of the US-Israel War on Iran.

Federal prosecutors allege that officers of the contractor agreed to pay General Mansour Barzani a bribe of $0.25 per liter in exchange for exclusive access to deliver jet fuel at EIA. While the contractor reportedly received hundreds of millions of dollars under DLA contracts, competing firms were allegedly blocked from the airport. Consequently, the DLA issued one-time-buy contracts to the company, often at "greatly inflated and noncompetitive prices."

The DOJ states that funds resulting from the scheme were transferred to NYJD Trust No. 1, a trust established in Virginia for the private benefit of Barzani. In 2018, approximately $30 million was allegedly moved from the trust to purchase the Beverly Hills estate, with further funds used for renovations between 2019 and 2022.

The investigation was conducted by the FBI Washington Field Office, the Defense Criminal Investigative Service (DCIS), and IRS Criminal Investigation (IRS-CI). The case is being handled by the Criminal Division’s Money Laundering, Narcotics and Forfeiture Section (MNF).

Mansour Barzani is also known for significant business interests in the region, including a reported 60 percent stake in the Lanaz Refinery in Erbil.

The DOJ emphasized that a civil complaint is merely an allegation, and the government must establish that the assets are subject to forfeiture by a preponderance of evidence. No criminal convictions have been determined at this stage.