The Man Who Brought the 'World's 5th Richest' LVMH Chairman to Court

Journalist and Filmmaker Turned French MP Fran?ois Lupin
"Former Intelligence Chief Spied on Film Criticizing LVMH"
Arnaud States in Court "Deceased Close Associate Was Responsible"

On the 28th of last month (local time), Bernard Arnault, chairman of Louis Vuitton Mo?t Hennessy (LVMH) and the world's fifth richest person, appeared at the Criminal Court in Paris, France. Dressed in a navy suit, he testified calmly and composedly before the judge for over three hours during the trial. At times, he even smiled and delivered humorous testimony, showing a relaxed demeanor.

Bernard Arnault, Chairman of LVMH, attending a trial at the Criminal Court in Paris, France, on the 28th of last month (local time) (Photo by Reuters-Yonhap News)

The court asked Chairman Arnault whether he had ever met one-on-one with 'Fran?ois Ruffin.' Arnault replied, "No," and Ruffin, who was in the gallery, greeted him. Arnault responded, "It would be an honor to treat you to a cup of coffee and a plate of fries," adding, "We could talk about movies, economics, and how large corporations operate."

Although he seemed to respond cheerfully, Arnault has been troubled by this trial that has lasted for years. The trial, in which he appeared as a witness, concerns Bernard Squarcini, former head of France's domestic intelligence agency (DGSI). Squarcini has been accused of improperly ordering agents to apprehend a blackmailer who claimed to possess inappropriate photos of Arnault during his tenure, and after retirement, of surveilling left-wing figures critical of LVMH. The person surveilled in this case is none other than Ruffin.

The New York Times (NYT) recently reported on the confrontation between Arnault and documentary filmmaker Ruffin, summarizing the events that have unfolded. The trial began in 2019 and is ongoing. Squarcini faces a total of 11 charges, including misuse of public funds and civilian surveillance.

Ruffin, the surveillance target, is a current member of the French National Assembly. A journalist and film director, he produced the 2015 documentary film Merci Patron!, which exposed the working conditions of subcontracted workers at LVMH. The film depicted the process in which Arnault closed LVMH factories and outsourced work, resulting in thousands of employees being laid off. The film won the C?sar Award, known as the French equivalent of the Oscars, the following year.

The world's largest luxury empire, LVMH, began in 1984 when Arnault, at age 35, acquired the textile company Boussac, the parent company of Christian Dior, for just one franc. At the time, Arnault promised to maintain jobs but later broke that promise, according to Ruffin. Before making the film, Ruffin, who was running a newspaper, gathered laid-off LVMH employees to seek an apology from the company and began producing the film in 2013. Flyers produced during this process ended up in Arnault's hands.

Fran?ois Lupin, a former journalist and film director, French National Assembly member Photo by AFP Yonhap News

The person who appeared at this point was Bernard Squarcini, former DGSI director from 2008 to 2012. After retiring, he ran a private agency, and it is said that Arnault's secretary directly contacted him, leading to surveillance of Ruffin. Investigators believe that during this process, Squarcini used government connections he had made while serving as head of the intelligence agency to wiretap Ruffin's phone and conduct surveillance activities.

He is also accused of ordering DGSI agents to apprehend a blackmailer who claimed to have inappropriate photos of Arnault while serving as DGSI director in 2008. It is presumed that Squarcini had a relationship with LVMH even before his retirement. Squarcini claims that considering Arnault's social status and wealth, he regarded the blackmail case as a national security matter at the time.

Regarding all the charges against Squarcini, Arnault argued that the actions were taken unilaterally by Pierre God?, former LVMH vice chairman who passed away in 2018, and that he was unaware of them. Arnault emphasized, "I am here only as a witness." In connection with this case, Arnault reached a settlement with the court in 2021, paying 10 million euros (approximately 15.1 billion KRW) to end the investigation against him and avoid prosecution.

Although Arnault appeared calm throughout the trial, he reportedly showed signs of being unsettled when Ruffin's lawyer began questioning him. In particular, he reacted irritably to the part of the film that described LVMH as "the champion of mass layoffs and outsourcing," calling it "completely false." Arnault said, "How many jobs has he (Ruffin) created since becoming a politician in 2017?" and stated that LVMH employs 200,000 people worldwide, with 20% of them in France.