PARIS — Marcel Frydman, former chief executive officer of Marionnaud Parfumeries, was found guilty on Wednesday of having trumped up the company’s accounts in 2002 and 2003.
This story first appeared in the July 10, 2008 issue of WWD. Subscribe Today.
The Paris criminal court convicted him with an 18-month suspended prison sentence and a fine of 300,000 euros, or $472,124 at current exchange.
Others were implicated in the case, as well. His son, Gérald Frydman, formerly Marionnaud’s vice president and financial director, was handed down a suspended prison sentence of eight months and a 100,000 euros, or 157,379, fine. Laurent Ferré, Marionnaud’s former financial controller, was given a four-month suspended prison sentence, a court spokeswoman confirmed.
The three men were put on trial after preliminary proceedings were begun in November 2005 by Paris’ public prosecutor’s office. Those, in turn, were kicked off after proceedings were initiated by the Autorité des Marchés Financiers, France’s stock market watchdog, concerning irregularities in Marionnaud’s financial disclosures between 2002 and 2004.
As part of the sentencing Tuesday, the criminal court required both Frydmans to pay damages and interest to civilians, the spokeswoman said.
According to reports, they must pay 32 former Marionnaud shareholders 2 euros, or $3.15, per 28 euros and 6,000 euros, or $44.08 and $9,447.27, plus 250 euros, or $393.57, in legal fees.
Tuesday’s conviction came less than one year after Marcel Frydman was fined for other offenses.
In October 2007, he was sentenced by the criminal court to pay 15,000 euros, or $23,614, 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 worth of damages to companies including LVMH Moët Hennessy Louis Vuitton, PPR and Beauté Prestige International.
In July 2007, Frydman was fined 1 million euros, or $1.57 million, by the AMF for having falsified Marionnaud’s accounts.
Frydman and his son left the perfumery chain in September 2005, seven months after selling Marionnaud to A.S. Watson.