Financial adviser to France's richest woman target of police search

Police searched the offices of the financial adviser to France's richest woman Friday as part of a growing scandal that includes allegations she gave cash illegally to President Nicolas Sarkozy's presidential campaign.
APR 15, 2010
By  Bloomberg
Police searched the offices of the financial adviser to France's richest woman Friday as part of a growing scandal that includes allegations she gave cash illegally to President Nicolas Sarkozy's presidential campaign. Three vans of police officers arrived at the offices of Patrice de Maistre, chief financial adviser to L'Oreal heiress Liliane Bettencourt. They cordoned off the modern office building in the posh Paris suburb of Neuilly-sur-Seine, where Sarkozy was long mayor, and officers were coming in and out. French authorities are looking into Bettencourt's foreign bank accounts and tax file. Separately, French prosecutors opened a preliminary investigation this week into claims that she secretly gave euro150,000 to Sarkozy's party during his 2007 presidential election campaign. The claims, which are unproven and which Sarkozy denies, are part of a large and growing scandal that has destabilized Sarkozy's conservative government and helped push the president's approval ratings to new lows among French voters squeezed by the global economic crisis. De Maistre has been at the heart of the affair, which stemmed from an inheritance dispute between Bettencourt and her daughter. De Maistre recently acknowledged that Bettencourt had tens of millions of euros in foreign bank accounts. Sarkozy has sought to crack down on tax havens and wealthy French taxpayers with assets abroad. More explosively, a former accountant who worked under de Maistre, Claire Thibout, told investigators that de Maistre ordered her to withdraw large chunks of cash from Bettencourt's accounts for Sarkozy's UMP party during the 2007 election campaign. De Maistre and Thibout were questioned together by investigators Thursday. Thibout denied earlier reports attributed to her that envelopes of cash were given to Sarkozy himself, according to a judicial official. She told investigators Thursday that de Maistre asked her to withdraw money to give to UMP treasurer Eric Woerth. Antoine Gillot, Thibout's lawyer, told The Associated Press on Friday that extracts of his client's questioning had been leaked to media to destabilize his client and called for an independent investigating magistrate to be named to conduct the inquiry. During Wednesday's questioning, De Maistre denied ordering any such withdrawals, the judicial official said. The official was not authorized to be publicly named, according to French judicial policy. Woerth is Sarkozy's labor minister and in charge of a difficult pension reform that aims to raise the retirement age in France from 60 to 62. Opposition politicians are demanding that Woerth resign, but Sarkozy has vigorously defended him. Campaign finance scandals have dogged past French administrations. Sarkozy calls the campaign cash allegations an effort to smear him. Prime Minister Francois Fillon said Friday that the allegations were "not based on evidence." The people behind the claims "were perhaps blinded by a passion to harm the president, while they in fact harmed France," he said during a visit to Croatia. Bettencourt's lawyer, Georges Kiejman, said Thursday that "nothing has proven that Madame Bettencourt is conducting secret political financing." An intergovernmental financial inspection agency is investigating Bettencourt's tax file, and says it will release its findings by Monday.

Latest News

Indie $8B RIA adds further leadership talent amid growth drive
Indie $8B RIA adds further leadership talent amid growth drive

Executives from LPL Financial, Cresset Partners hired for key roles.

Stock volatility remained low despite risk events
Stock volatility remained low despite risk events

Geopolitical tension has been managed well by the markets.

Fed minutes to provide signals on rate cuts
Fed minutes to provide signals on rate cuts

December cut is still a possiblity.

Trump's tariff talk roils markets, political leaders
Trump's tariff talk roils markets, political leaders

Canada, China among nations to react to president-elect's comments.

Ken Leech formally charged by SEC, US Attorney's Office
Ken Leech formally charged by SEC, US Attorney's Office

For several years, Leech allegedly favored some clients in trade allocations, at the cost of others, amounting to $600 million, according to the Department of Justice.

SPONSORED The future of prospecting: Say goodbye to cold calls and hello to smart connections

Streamline your outreach with Aidentified's AI-driven solutions

SPONSORED A bumpy start to autumn but more positives ahead

This season’s market volatility: Positioning for rate relief, income growth and the AI rebound