The long-running judicial investigations into suspected criminal activity surrounding the affairs of L’Oréal heiress Liliane Bettencourt, centred on money-laundering, illegal political funding, fraud, tax evasion, influence peddling and profiteering from the billionaire’s frail mental condition, finally came to a close on March 28th, exactly one week after former president Nicolas Sarkozy was placed under investigation in the case on the basis of “serious or concordant” evidence that he “abused” Bettencourt’s diminished mental faculties.
There will now be a period of at least four months before a decision is made by the investigating magistrates, in conjunction with the public prosecutor’s office, on what charges should be brought, and against whom, and the fixing of a date for a trial.
Liliane Bettencourt, 90, who has a 30% stake in cosmetics giant L’Oréal, founded by her father, is ranked by Forbes as the richest person in France and the 9th wealthiest individual worldwide. A medical examination ordered by magistrates in June 2011 found that she was suffering from “mixed dementia” and “a moderately severe stage [sic] of Alzheimer’s disease”. The examination found that the “slow degenerative cerebral process” began in 2007.
The judicial investigation has focussed on evidence that Bettencourt, who has also long-suffered partial deafness and who has now been placed under guardianship, was preyed upon for both personal gain by some of her close entourage, and to provide illegal political funding, notably Sarkozy’s 2007 presidential election campaign, by others (see links to Mediapart's investigations and articles on the Bettencourt affair at the end of page 3).
Sarkozy was the last in a list of 12 people (see page 3) who have now been formally placed under investigation– a legal step that precedes any eventual charges being brought – in the principal investigation, one of three in all, wound up last week by the three Bordeaux-based magistrates in charge of the case, Jean-Michel Gentil, Cécile Ramonatxo et Valérie Noël.
Announcing their decision, a statement from public prosecutor Claude Laplaud read: “The three examining magistrates tasked for the past two years with the judicial investigation opened into the counts of abuse of frailty, of aggravated fraud, of aggravated abuse of confidence, of complicity in and the handling of the proceeds of these crimes committed to the disadvantage of Mrs Liliane Bettencourt, of misuse of company assets, of complicity in and the handling of the proceeds of these crimes committed to the disadvantage of the Clymène company, and of laundering of the proceeds of tax fraud, considering that this investigation is completed, have, on March 28th [2013], transferred the case file to the public prosecutor for its finalizing and have informed the 12 people placed under investigation, the five civil parties and their lawyers of this.”
As set out under French law for all judicial investigations, those who have been placed under investigation, along with the civil parties to the case, now have three months in which they can apply to the magistrates for further investigations to be carried out. A further month is added before charges and a trial date are pronounced, making it likely that what is believed likely to become a major and lengthy trial will not begin before the end of the year.
Sarkozy warns 'I won't let matters end there'
Two other investigations into the affairs of Liliane Bettencourt, also led by the three Bordeaux magistrates, were already completed before last week. One of these concerned concerned suspected influence peddling, notably the granting of the Légion d’honneur, France’s highest order of civil merit, to Liliane Bettencourt’s wealth manager, Patrice de Maistre. He received the award from the then-budget minister, Eric Woerth, whose wife Florence had been hired by Maistre as an investment advisor several months earlier. Both Woerth, who was Sarkozy’s 2007 presidential election campaign treasurer, and Maistre were placed under investigation in connection with the suspected influence peddling, and also, concerning the principal investigation wound down last week, on separate counts relating to fraud and illegal cash donations.
The third enquiry involved the secret recording of conversations between the L’Oréal heiress and her close advisors that were made between 2009 and 2010 by her butler, Pascal Bonnefoy, who was placed under investigation for invasion of privacy. Also placed under investigation for invasion of privacy for publishing the contents of the tapes are five journalists, including Mediapart’s Editor-in-Chief Edwy Plenel, the website’s investigative journalist Fabrice Arfi, his former colleague Fabrice Lhomme, the editor of weekly news magazine Le Point, Hervé Gattegno, and the magazine’s Editor-in-Chief, Franz-Olivier Giesbert.
The completion of the investigation came after a turbulent week of disturbing events during which Judge Gentil, who personally signified Sarkozy of his placing under investigation during questioning on March 21st, received death threats against himself and his family in an anonymous letter that also contained a blank bullet. "You are physically well protected," the letter was reported to have read, "but one of yours is going to disappear."
That followed several days of extraordinarily virulent public attacks on Gentil by Sarkozy and his close political allies, including former presidential advisor and conservative UMP party MP, Henri Guaino, who described Gentil’s move to place Sarkozy under investigation as “dirtying the image of France” and “dishonouring French justice”. Gentil, meanwhile, announced he was filing a lawsuit against Guaino for “insulting a magistrate”.
Other UMP party figures, including Christian Estrosi, Nathalie Kosciusko-Morizet and Nadine Morano, all former ministers under Sarkozy, commented that Gentil was politically motivated, and even that Sarkozy’s placing under investigation was an attempt to divert attention from the placing under investigation just days earlier of socialist budget minister Jérôme Cahuzac.
Cahuzac, who immediately left government, is the subject of an investigation into suspected tax fraud, following a series of investigations by Mediapart, and which is unrelated to the Bettencourt case.
Enlargement : Illustration 4
The barrage of criticism from Sarkozy’s allies against Gentil and his fellow magistrates led French justice minister Christiane Taubira, on President François Hollande’s behest, to refer the matter to the High Council of the Magistrature (le Conseil supérieur de la magistrature), the CSM. In a statement issued on March 27th, the CSM announced it would “very soon” deliver its official advice to the justice minister on the consequences the public criticism of magistrates had “on the proper functioning of the judicial institution and upon the serenity of the justice process.”
For Sarkozy, who has not ruled out a return to politics and his possible candidature in the next presidential elections due in 2017, the prospect of standing trial for taking advantage of Liliane Bettencourt’s diminished faculties to fund a previous election campaign is potentially catastrophic.
According to reports first published in French dailies Le Monde and Le Parisien, and subsequently confirmed to Mediapart by a source close to Judge Gentil, there was a heated exchange between Sarkozy and the magistrate after the latter announced his placing under investigation at the end of several hours of questioning in the Bordeaux court buildings on the evening of March 21st. “Don’t you worry, I won’t let matters end there,” Sarkozy reportedly told Gentil. Mediapart’s source confirmed the exchange was not recorded in the official case file. “If he did not have Sarkozy’s comments recorded on a statement it’s because he’s seen, and heard, others of the kind,” said the source.
Four days later, Sarkozy published comments on his Facebook page denouncing an “unjust” and "unfounded” decision and announced that he was launching a legal appeal against his placing under investigation. “At no time in my life in public office have I betrayed the duties of my position,” he wrote, adding further in the text that “the truth will end up by triumphing”.
Following the threat issued against Gentil, and others that were also received by one of the two principal magistrates’ union, the left-leaning SM, Sarkozy said he was postponing the appeal he had launched. “Monsieur Nicolas Sarkozy, respectful towards the [French] republic’s institutions, has asked me to suspend all recourse [to appeal], pending the opinion of the High Council of the Magistrature,” announced his lawyer Thierry Herzog in a brief statement issued March 28th.
Under investigation, facing trial
The following is a list of the twelve people now placed under investigation in the principal part of the investigation, that concerning the most serious crimes of fraud, money laundering, misuse of company assets, receiving the proceeds, influence peddling and taking advantage of Liliane Bettencourt’s diminished mental faculties, a crime under French law that is termed as ‘abuse of weakness’ ('abus de faiblesse'). All face being charged and tried for the reasons they were placed under investigation, (presented here in chronological order), which in each case was decided on the basis of what the magistrates considered to be “serious or concordant evidence” found to implicate them.
François-Marie Banier: A one-time author and celebrity photographer, a gay high-society dandy who had a close relationship for several years with Liliane Bettencourt from whom he received almost 1 billion euros in gifts including cash, artworks and life insurance policies. He was placed under investigation on December 14th 2011 for “abuse of frailty”, “breach of trust”, “aggravated fraud” and “money laundering”.
Martin d'Orgeval: Partner of François-Marie Banier, placed under investigation on December 14th 2011 for “abuse of frailty”, “money laundering” and for “receiving” the proceeds of the crimes.
Patrice de Maistre: Former wealth and investment manager for Liliane Bettencourt, placed under investigation on December 15th 2011 for “abuse of weakness”, “conspiring in breach of trust”, “aggravated fraud” and “money laundering”. He was later additionally placed under investigation on March 22nd 2012 for “misuse of company assets”, and also for “active influence peddling”, on June 12th 2012. He notably spent 88 days in preventive detention, beginning March 22nd 2012.
Éric Woerth: Former budget minister, later labour minister, under Nicolas Sarkozy, treasurer of Sarkozy’s 2007 presidential election campaign, and treasurer of Sarkozy’s conservative UMP party. He was placed under investigation on February 8th 2012 for “passive influence peddling” and, on March 9th 2012, for “receiving” illicit cash payments from Patrice de Maistre.
Pascal Wilhelm: A tax lawyer who succeeded Patrice de Maistre as wealth and investment manager for Liliane Bettencourt, placed under investigation for “abuse of frailty” on June 13th 2012 and also, on February 11th 2013, for “fraud”.
Alain Thurin: Liliane Bettencourt’s former nurse was placed under investigation on July 11th 2012 for “abuse of frailty”.
Fabrice Goguel: Liliane Bettencourt’s former chief tax lawyer was placed under investigation on September 6th 2012 for “abuse of frailty”, “fraud” and “breach of trust” all in connection with his management of the judicial and fiscal arrangements concerning the ownership of Bettencourt’s Seychelles island, d’Arros.
Carlos Cassina Vejarano: A former administrator of d’Arros, he was placed under investigation on October 26th 2012 for “abuse of frailty” and “fraud”.
Patrice Bonduelle: A notary (solicitor) who served Liliane Bettencourt between 2010 and 2011 was placed under investigation in November 2012 for “conspiring in abuse of frailty”.
Jean-Michel Normand: A notary (solicitor) who served Liliane Bettencourt when her will was modified and gifts offered in favour of François-Marie Banier, was placed under investigation on January 15th 2013.
Stéphane Courbit: A reality TV show and online gambling entrepreneur and a client of Pascal Wilhelm, whose company LOV received an investment of more than 143 million euros from Liliane Bettencourt in May 2011. He was placed under investigation on February 19th 2013 “fraud” and “receiving the proceeds of abuse of frailty”.
Nicolas Sarkozy: The former French president (2007-2012) was placed under investigation for “abuse of frailty” on March 21st 2013.
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For more on the Bettencourt affair, click on the links below:
Nicolas Sarkozy put under investigation for 'exploiting' L'Oréal heiress: the French Right cry foul
How the Bettencourt affair led Sarkozy before the judge
Judge links L'Oréal heiress cash withdrawals to Sarkozy campaign funding
Sarkozy campaign treasurer under investigation for illegal funding, influence peddling
L'Oréal heiress ordered to pay 77.7 million euros after tax scam probe
Behind the bettencourt affair: the battle for L'Oréal
A scandal too far: Bettencourt magistrate is disowned
French prosecutor in Bettencourt affair illegally spied journalists' phone calls
The eerie plot penned by L'Oréal family scandal dandy in 1971
Dinners, cash and Sarkozy: what Bettencourt's accountant told Mediapart
Bettencourt butler bites back: 'I saw L'Oréal family destroyed'
Bettencourt battle back after L'Oréal heiress signs away 143 million euros
The political guard watching over L'Oréal
Bettencourt chauffeur adds to Sarkozy campaign fund allegations
Bettencourt tapes stolen in mystery break-ins targetting Mediapart, Le Point and Le Monde
French interior minister drops libel action against Mediapart
Why we need a strong media in France
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English version by Graham Tearse