The businessman is suspected of having “financed his lifestyle and personal expenses by drawing on the funds of the companies Lagardère SAS and Lagardère”
CEO Arnaud Lagardère, suspected of having drawn on the accounts of his companies to finance his lifestyle and personal expenses for several years, was indicted this Monday for “dissemination of false or misleading information, vote buying, misuse of corporate assets and abuse of power, and failure to file accounts”specified a judicial Source. “He was placed under judicial supervision with a ban on management and the obligation to provide a bond of 200,000 euros”she added.
The businessman, 63, arrived at court shortly after 9:00 a.m. with his lawyer, Sébastien Schapira. He was questioned as part of a judicial investigation opened by the National Financial Prosecutor’s Office (PNF) in April 2021 on the basis of a complaint from the Amber Capital fund, a report from the Financial Markets Authority (AMF) as well as a report from the High Council of Auditors (H3C, now the High Audit Authority, H2A), according to a judicial Source.
The offenses targeted are: dissemination of false or misleading information, abuse of corporate assets, powers and trust, presentation of inaccurate accounts in particular, this Source listed. The acts were committed between April 2009 and December 2022.
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“A delicate financial situation”
Arnaud Lagardère, who inherited the empire built by his father, Jean-Luc Lagardère, upon his death in 2003, is suspected of having “financing your lifestyle and personal expenses by drawing on the funds of the Lagardère SAS and Lagardère companies” (LCM), detailed the judicial Source. For several years, these companies “would have notably taken charge of expenses linked to the buildings he occupies as well as an inheritance debt, and numerous current account advances”she added.
In November 2019, the Letter (formerly Letter A) revealed that Arnaud Lagardère refused to publish the accounts of his personal holding company, Lagardère Capital & Management (LCM), so as not to “make public your personal financial situation, in particular your level of debt”. “Many times”according to the Letter, the group’s shares held by Arnaud Lagardère have reached a value lower than that of its debt, “creating a delicate financial situation vis-à-vis creditors”. According to a Source close to the case, the case is based on accounting irregularities, which remained within the scope of Arnaud Lagardère’s personal companies, and which did not result in financial damage for the Lagardère group (media, publishing, distribution in train stations and airports).
“Significant anomalies”
The former deputy general manager, Pierre Leroy, pillar of the group, was indicted on April 10 for “vote buying, complicity in abuse of corporate assets and presentation of inaccurate annual accounts” in particular, indicated the judicial Source, confirming partial information of Release. Asked by AFP, his lawyer Céline Lasek did not wish to react. Two auditors were indicted in March for complicity in misuse of corporate assets.
One, also prosecuted for presentation of inaccurate accounts and non-disclosure of criminal facts, was struck off by the H3C in April 2023 for “to have certified, without reservation” the accounts from 2014 to 2018 despite “significant anomalies”, according to the decision consulted by AFP. He contests his removal. “He considers that he did his job in accordance with the rules. He committed no fault, neither ethical nor, a fortiori, criminal.”his lawyer, Frédérique Baulieu, told AFP.
The police officer of the audit office launched an investigation at the end of 2019 and notably revealed 202 million euros in irregular financial flows between 2014 and 2018, including 42 million euros in current accounts debited from two real estate companies (SCI), 32 million euros in inheritance debt and 6 million euros in current account debit from Arnaud Lagardère. In the decade following the death of Jean-Luc Lagardère, his heir fell into debt, sold the EADS aerospace branch and sold several media outlets.
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In 2021, he renounced share sponsorship, a status created by his father which allowed them both successively to lead the Lagardère group with less than 10% of the capital, thus precipitating the dismantling of the family empire. In November 2023, the Bolloré family and its media and publishing giant, Vivendi, took control of the Lagardère group.
Another aspect of this affair concerns a general meeting of the Lagardère group in May 2018, during which Qatar, the reference shareholder, made an about-face at the last moment by changing its vote, initially in favor of Amber Capital, to finally support governance.
This vote took place as part of the struggle for influence between Vincent Bolloré, ally of Amber Capital, and Bernard Arnault, CEO of LVMH, who supported Arnaud Lagardère.
