French luxury mogul Bernard Arnault defiant at ex-spy chief trial

PARIS: France's richest man, LVMH chief Bernard Arnault, testified Thursday in the influence-peddling trial of a former head of France's domestic intelligence agency, denying any knowledge of an alleged scheme to protect the luxury group.

Bernard Squarcini, former head of the DCRI security service (since renamed the DGSI), is among 10 people on trial in Paris charged with using his security contacts for private gain, including obtaining confidential information for LVMH.

Squarcini faces 11 charges including influence peddling, misuse of public funds and compromising national security information.

"I would like to point out that I am here as a witness, a simple witness, and that my indictment was never considered by the investigating magistrates," Arnault told the hearing.

"I was completely unaware" of the alleged scheme, he added.

The charges relate to the period when Squarcini headed the DCRI from 2008-12 and to his subsequent return to the private sector, when he worked largely for LVMH as a consultant.

Prosecutors demanded a four-year suspended jail sentence, a 300,000-euro ($317,00) fine and a five-year ban on the ex-intelligence chief holding public office.

Investigators say that as early as 2008, DCRI officers were deployed to try to identify a blackmailer targeting Arnault.

Other allegations relate to spying on Francois Ruffin, a former journalist who is now a leading left-wing lawmaker - and, from 2013 to 2016, the leftist newspaper Fakir that Ruffin founded.

Before his 2017 election to parliament, Ruffin produced a satirical film about Arnault titled "Merci Patron" ("Thanks Boss") that won a Cesar award - France's top cinema prize.

Ruffin, whose lawyers requested that Arnaut testify, has said that the lawsuit had "been decapitated" because LVMH itself did not face action.

The company settled out of court in 2021, paying 10 million euros in fines. Arnault was questioned by investigators but no charges were brought.

LVMH had been concerned about the activities of Ruffin, who at the time was planning to disrupt its shareholder meetings.

'Absolutely not'

But Arnault said that in the accord with investigating magistrates "it is stated that the group does not recognise any responsibility", saying the settlement had been proposed by the magistrates.

Agreeing to the deal was a question of "avoiding being caught up in the media uproar that followed", Arnault told the court.

He also denounced Ruffin, saying "I think he is trying to exploit this trial for personal, media, political and even commercial reasons".

Asked by the judge if he was aware of an attempted blackmail in 2008, for which the DCRI mobilised its agents to identify the blackmailer, Arnault replied: "Absolutely not."

Arnault was also questioned if he was informed by Pierre Gode, vice president of the group who died in 2018, of surveillance of Francois Ruffin and Fakir. He replied again: "Absolutely not."

Arnault, who regularly vies with the likes of Elon Musk for the title of the world's richest person, has along with his family a fortune of $158.6 billion, according to Forbes magazine.

He also rejected the allegations concerning LVMH's work practices in Ruffin's documentary, describing his group as one that pays "eight billion" euros to the state per year in taxes and "recruits the most in France".

LVMH has sought to further broaden its empire especially into media, last month taking control of Paris Match magazine to join the dailies Les Echos and Le Parisien in its media stable.

In another eye-catching move, the Arnault family is buying a controlling stake in football club Paris FC. Many observers see it as a move to turn the Ligue 2 club into a rival to French giants Paris Saint-Germain.