Decanter World Wine AwardsThree given suspended sentences for massive Champagne fraud
- Monday 7 January 2013
Between 2002 and 2005, Patrick Jean, the former president of Esterlin, commercial director Lysiane Géraudel and chef de Cave Franck Zehner sold 426,000 bottles of fake vintage champagne to the Ed supermarket group, a subsidiary of the Carrefour group.
The three were first indicted in 2005, as Decanter.com reported.
The Mancy-based co-operative also has to pay a fine of €20,000, the court in Chalon decided before Christmas.
The court has additionally levied a fine of €2.841m payable to French customs and excise
However the Ed supermarket group, which sought €2m in damages, is understood to be unhappy with its award of €5,000.
The CIVC, Champagne’s governing body, also brought a civil action against Esterlin, communications director Thibaut Le Mailloux confirmed.
It did this ‘as soon as the case was brought to the attention of the criminal court by the fraud squad,’ he said. ‘This is what we systematically do when such cases – albeit rare – occur. This shows our strong determination to take action against any company or individual whose criminal actions directly or indirectly damage the reputation of Champagne.’ It is unclear whether further action will be taken against the co-op.
During the trial Zehner said in a signed statement read out in court, ‘Since I arrived in 2000, there has never been a true vintage [Champagne] sold to Ed, never.’
The co-defendents claimed not to know what went on in the cellar and sought to blame Zehner for the fraud and other problems at the co-op. However the judge suggested Zehner would have had no interest in organising the fraud on his own. If that had been the case, he quipped, 'We are here in the presence of a crime without a motive.'
When the current Esterlin president Eric Potié, who is also president of the Federation of Cooperatives of Champagne (FCVC), was asked by the judge if these practices had disappeared at the co-op, his response was: ‘In my position, I am unable to know exactly what is in the cellar, but it seems to be correct.’
Have your say!
Joel Watson
January 08 22:39
The tragedy here is the fact that the public purchased some much fake vintage champagne over the years and did not understand what they were buying. They could not tell the difference between a vintage and non-vintage champagne? In that case why does the public buy vintage wine anyway. Save the shillings and buy non-vintage you are going to better off as long as it tastes good.
“The CIVC, Champagne’s governing body, also brought a civil action against Esterlin, communications director Thibaut Le Mailloux confirmed.” What is wrong with the CIVC that they can not take the time to taste vintage champagne and understand the difference between the wine makers vintage and non-vintage. Or simply check the records for what was shipped verses what was brought in as vintage juice. I am simplifying this but there are ways the Government organizations can see what a winery is shipping and what it produced in juice each year and have an idea of what should be sold as vintage and non-vintage.
My concern is that the public is buying a statues of wine which they can not verify by tasting the wine and knowing if it is or should be a vintage or not. Is the public hurt by this? Apparently not as they continued to enjoy the champagne thinking it was a vintage wine. But they, the customers, do need a bit of education, I would say, to save themselves from over spending on a champagne they need not pay so dear a price for.
And I question the chain store that did not verify what it was selling to its customers. A little false advertising is going on here and the store does have a fiduciary duty to protect its customers from fraud I do believe?
Rich Mora
January 08 15:06
I certainly hope mssr Potie stepped down as President of the Federation of Cooperatives of Champagne!
Can't have a fox guarding the chicken coop.
Lalau
January 08 14:20
7 years of investigation for such an obvious fraud and then such a small fine...