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LVMH chief executive Bernard Arnault testified Thursday that he knew nothing about an alleged racketeering scheme involving the former head of France’s domestic intelligence agency, Bernard Squarcini. Squarcini has been accused of using his security contacts for private gain, including obtaining confidential information on behalf of LVMH. Arnault insisted that he was totally unaware of those activities and underlined that he was there as a simple witness.
Squarcini, who was in charge of the DCRI security service – now DGSI – from 2008 to 2012, is charged with 11 counts including influence peddling, misuse of public funds, and compromising national security information. The charges also concern his private sector work as a consultant for LVMH. According to investigators, as early as 2008, DCRI officers were deployed to find a blackmailer targeting Arnault.
Arnault was facing accusations of ordering a spying operation against Francois Ruffin, a former journalist who is now a leading left-wing lawmaker. Ruffin made a satirical film about Arnault titled “Merci Patron” that won a Cesar award. According to investigators, from 2013 to 2016, LVMH conducted a probe on Ruffin and his leftist newspaper Fakir. Arnault said he was not aware of any surveillance.
During his testimony, Arnault made it a point to mention that he was never considered for indictment by the investigating magistrates. He said once more that in the 2021 settlement where LVMH paid 10 million euros in fines, the group did not recognize any responsibility; this settlement was proposed by the magistrates to avoid media uproar.
Arnault denied claims about LVMH’s work practices revealed in Ruffin’s film. He defended his group on the grounds that LVMH pays €8 billion in taxes a year and is one of France’s biggest employers. He branded Ruffin as opportunistic, using the trial for personal promotion in the media, politics, and business.
This whole trial has cast significant attention towards the MDA of LVMH and its practices. Arnault emphasized the company always acted legally while stressing the contributions It was bringing about economically. LVMH extended their empire not so long ago as they gained full control over the glossy weekly- Paris Match while it intends to take up the acquisition of football club-Paris FC.
The case continues to focus on the nexus of business, politics, and media in France. Arnault, whose family wealth is estimated at $158.6 billion, frequently competes for the position of richest person in the world.
