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Arnault Denies Knowing About Blackmail Plot Against Him at Ex-Top Spy’s Trial

Bernard Arnault arrives at court in Paris on Nov. 28. (Nathan Laine/Photographer: Nathan Laine/Bloom)

(Bloomberg) -- Bernard Arnault denied knowing anything about a blackmail plot against him over an alleged extramarital affair, as he gave evidence at the trial of a former French spy chief who faces several accusations including corruption.

France’s richest man appeared in a Paris court as a witness and said he found out about the extortion attempt “years later in the press,” confirming statements made earlier to investigators behind closed doors.

He described the whole matter as “wacky,” telling judges that late top aide Pierre Godé had full responsibility for handling security matters at LVMH Moët Hennessy Louis Vuitton SE.

“It’s perfectly normal for him to have made a certain number of decisions without consulting me,” the LVMH chief executive officer said Thursday. “I’m away from France more than half the time. I have a team of collaborators who are empowered and autonomous.” Arnault isn’t accused of any wrongdoing. LVMH declined to comment further.

Bernard Squarcini is accused of overstepping his remit when he was head of France’s domestic intelligence agency to track blackmailers targeting Arnault. He denies the accusations.

Investigators also focused on Squarcini’s role in setting up a surveillance operation that targeted François Ruffin, a left wing activist turned member of parliament. Ruffin was working at the time on a documentary called “Merci Patron !” — a critique of LVMH and the power of the wealthy.

On Thursday, Arnault referenced the movie. “I saw it after it was released. I found it very funny,” he said. Ruffin “is much better as a filmmaker than politician.” Ruffin has been a left-wing French lawmaker since 2017.

The blackmail attempt allegedly involved a former bodyguard and a paparazzo demanding €300,000 ($316,040) in exchange for photos they claimed to have of Arnault with a woman who wasn’t his wife. The LVMH CEO pointed to the fact that no images were ever published and that the supposed paparazzo was never found. 

Squarcini earlier told the trial judges that the Direction Centrale du Renseignement Intérieur was in charge of preventing attacks on key French conglomerates. Squarcini said his decision to set teams in motion was perfectly justified in order to see whether the blackmail could amount to an attempt to destabilize LVMH.

Squarcini and Godé likely did “what they thought they had to do,” Arnault said in court reiterating that he wasn’t kept informed. “Squarcini was France’s top cop at the time, and he felt it was his duty to intervene.”

The Paris court hearings are scheduled until Friday, with a ruling due in several months.

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