Claude Cohen, a former American businessman operating the Monaco Legend Group, is at the center of an international investigation by the U.S. Department of Justice (DOJ) and the Internal Revenue Service (IRS) for alleged tax evasion and money laundering. The investigation implicates Cohen in laundering funds with the former First Lady of Angola.
Tatiana Regan, a Russian-born geologist and former wife of the now deceased Angolan President José Eduardo Dos Santos, is also a person of interest in the probe.
A senior Department of Justice (DOJ) official from the Southern District of New York, speaking on condition of anonymity, revealed that Claude Cohen and Tatiana Kukanova Regan established a British Virgin Islands-based offshore corporation, Duna Enterprises Group, in 2007.
The official stated, “We are closely examining their activities and the mechanisms they allegedly used to evade scrutiny and launder significant sums of money.”
Interpol Red Notice Arrest Warrant
Financial probes into the source of the former Angolan President’s family wealth have occupied African and European courts for over a decade resulting in Portugal, Angola and The Netherlands courts ordering the seizure of assets.
More recently, the international police agency Interpol issued a ‘red notice’ arrest warrant against the former first lady’s daughter Isabella Dos Santos on suspicion of money laundering.
Offshore Accounts and the Panama Papers Connection
According to French newspaper Le Monde, Regan maintained over $4.5 million in accounts at HSBC Switzerland until 2007. Following media scrutiny, during the same year she allegedly moved the funds to HSBC’s branch in Monaco with Cohen’s assistance. The 2016 Panama Papers leak would later expose Cohen and Regan’s joint offshore company, Duna Enterprises, and its connection to the HSBC bank in Monaco in 2007.
Investigators suspect this entity played a critical role in facilitating transactions that circumvented international financial regulations connected to Isabella Dos Santos. Investigators believe the profits would later be used to develop expensive real estate development projects in Monaco, and to create the Monaco Legend Group auction house in 2015.
Money Laundering Through High-End Auctions
Cohen’s Monaco Legend Group, which includes subsidiaries like Monaco Legend Boutique and Monaco Legend Motors, reportedly auctions luxury cars, watches, and artifacts, generating tens of million in annual revenue. The companies were established in 2015 by Claude Cohen, who has served as Chairman since their inception.
Investigators allege these transactions served as conduits for laundering funds on behalf of Russian politicians and oligarchs. Authorities suspect that since Russia’s invasion of Ukraine in 2022, Cohen’s network laundered tens of millions in various currencies, using his apparatus of offshore bank accounts and tax-free jurisdictions.
“The suspicions surrounding Cohen’s operations demonstrate how loopholes in financial systems can be exploited to bypass sanctions,” said Robert Ellis, a former investigator for the Financial Action Task Force (FATF). “The use of auction houses and shell companies allows bad actors to mask the origins and destinations of illicit funds.”
A DOJ official speaking on condition of anonymity stated a former disgruntled employee of the Monaco Legend Group provided American authorities a detailed list of all buyer and seller names, and banking transactions. The investigator claims in effort to prevent money laundering and ensure global tax compliance, US investigators plan to share the information with European governing tax authorities.
“The use of art and high-value goods to move illicit funds is a well-known tactic among sanctioned individuals,” said Dr. Emma Novak, a financial crime expert during a lecture at the University of Cambridge. “The revelation of these connections highlights systemic weaknesses in oversight mechanisms within the luxury goods and auction industries.”
Alleged Ties to Monaco’s Royal Circle
The investigation has also uncovered Cohen’s connections to Monaco’s elite, including Prince Albert II. Cohen, along with Regan and Monaco Legend associate Davide Parmegiani, reportedly attended royal events and supported charitable initiatives linked to the monarchy. Critics speculate these ties have shielded Cohen from local scrutiny.
In June 2024, the FATF placed Monaco banking on its “grey list” for insufficient action against money laundering, further tarnishing the principality’s reputation. A Monaco-based banker, who requested anonymity, stated, “High-net-worth individuals like Cohen exploit relationships to bypass scrutiny, exacerbating the financial system’s vulnerabilities.”
Real Estate Ventures Under Scrutiny
Investigators are also examining Cohen’s real estate dealings, including the ultra-luxury Pavillon Diana development in Monte Carlo. Sources allege the real estate project was financed via the Zenith and Batilux companies (managed by Claude Cohen) with funds allegedly linked to Regan and Russian oligarchs, raising concerns about the source of money used to acquire and develop expensive property in Monaco.
Wider Implications for Monaco and Beyond
Monaco’s royal family has faced mounting scrutiny in recent years. Allegations of corruption and conflicts of interest within Prince Albert’s inner circle, including former accountant Claude Palmero, have led to legal battles and dismissals. Documents obtained by investigative journalists from Le Monde revealed Palmero’s role in managing secret offshore accounts for the royal family, further damaging the principality’s reputation.
Prince Albert’s administration has vowed to reform its financial systems, but critics argue that deep-rooted relationships between elites and high-net-worth individuals like Cohen present significant challenges.
Ongoing Investigation
As U.S. investigators continue their forensic accounting across jurisdictions, the international community’s attention remains fixed on Monaco’s financial practices. The Cohen-Regan case highlights the broader issue of how luxury markets and offshore havens can be exploited for illicit financial activities. With the DOJ and IRS intensifying their efforts, the implications for Monaco’s standing as a tax haven and the global fight against financial crime are profound.