PARIS — Marcel Frydman, former chief executive officer of Marionnaud Parfumeries, and his son, Gérald Frydman, Marionnaud’s ex-vice president and financial director, have been found guilty of and fined for insider trading while at the perfumery between the end of 2002 and 2004.
This story first appeared in the February 26, 2009 issue of WWD. Subscribe Today.
Frydman must pay 5 million euros, or $6.37 million at current exchange, and his son, 550,000 euros, or $700,286, according to a filing by France’s financial markets authority AMF.
This isn’t the first time the pair has been in hot water. Last July, the Paris criminal court convicted Marcel Frydman with an 18-month suspended prison sentence and a fine of 300,000 euros, or $381,962, for having trumped up Marionnaud’s accounts in 2002 and 2003. Gérald Frydman, also implicated in the case, was handed a suspended prison sentence of eight months and a fine of 100,000 euros, or $127,321.
Those convictions came one year after Marcel Frydman was fined for other offenses. In October 2007, for instance, he was sentenced by the criminal court to pay 15,000 euros, or $19,098, for having sold at least 3,560 tester bottles destined for free, in-store fragrance sampling. He was also made to pay thousands of euros in damages to companies including LVMH Moët Hennessy Louis Vuitton, PPR and Beauté Prestige International.
The Frydmans left Marionnaud in September 2005, seven months after selling the perfumery chain to A.S. Watson.
In recent Marionnaud-related news, Paris Look, the duty-free store it owns on Paris’ Boulevard Haussmann that employs 125 people and caters to tourists, will be shuttered in the first half of this year due to decreased foreigner footfall in the city over the past two years, the company stated. Paris Look has also been impacted by the recent financial crisis, although its financial woes really began about four years ago. It stated that it has experienced steep drops in sales and profits since 2005, without breaking out figures.