Espionage and Influence Peddling: LVMH Scandal Rocks French Intelligence
In France, the trial of Bernard Squarcini, the former head of the country’s domestic intelligence agency, has begun. Squarcini stands accused of transmitting classified information to Bernard Arnault, the owner of LVMH, the world’s leading producer of luxury goods, including the renowned Louis Vuitton and Moët & Chandon brands.
Nicknamed “The Shark” for his adeptness at operating covertly, Squarcini led domestic intelligence (DCRI, now DGSI) from 2008 to 2012 during the presidency of Nicolas Sarkozy. The charges encompass activities both during his tenure and after his resignation in 2012, when he founded the private agency Kyrnos Conseil, securing contracts worth €2 million with LVMH. The accusations include revealing state secrets, document forgery, misappropriation of public funds, and influence peddling.
Squarcini is also suspected of spying on journalist François Ruffin, the creator of the 2016 documentary Merci Patron! (Thank You, Boss!). The film highlighted the plight of a working-class family who lost their livelihoods after an LVMH supplier relocated its operations overseas. The exposé stirred public outrage, casting a shadow over Arnault’s reputation.
The trial delves into a broad array of allegations. In 2013, Squarcini allegedly obtained documents related to a lawsuit involving Hermès, which was in legal conflict with LVMH. The document transfer implicated a former head of France’s criminal police, who has already received a suspended sentence and a fine.
Among the other defendants are Pierre Liotta, a former high-ranking intelligence official, and Laurent Marcadier, a former judge at the Paris Court of Appeal. Bernard Arnault, whose wealth is estimated at $156 billion, is not named as a defendant in the case. In 2021, LVMH paid a €10 million fine, thereby avoiding further legal proceedings.
Squarcini maintains that his actions were driven by considerations of national security, arguing that protecting Arnault and his business was deemed vital for the French economy. However, judges have underscored that his conduct undermined state interests and tarnished the reputation of France’s intelligence services.
François Ruffin’s legal representatives believe the trial will shed light on how LVMH managed to surveil a journalist and interfere with the media by leveraging a former intelligence chief. The lingering question is how the corporation evaded prosecution, leaving responsibility to Squarcini and the other accused.
