Christine Lagarde: expected to be formally charged in connection with a £270million fraud

Posted: May 23, 2013 by tallbloke in Legal, Politics

From the Mail, news that International Monetary Fund Director Christine Lagarde is about to be “Roasted toasted, fried and grilled” by the courts:

lagardeThe head of the International Monetary Fund appeared in court today where she is expected to be formally charged in connection with a £270million fraud and embezzlement case.

Christine Lagarde’s humiliation is not only a massive personal blow which could lead to her resignation, but one which will plunge the world’s banking system into further ignominy.

The clearly nervous 57-year-old said nothing to reporters as she entered the Court of Justice of the Republic, a special tribunal set up to judge the conduct of France’s government ministers,  shortly after 8.30am.

Lagarde faces a maximum sentence of 10 years in jail if found guilty of the very serious charges.

It was when she was President Nicolas Sarkozy’s finance minister that she is said to have authorised a 270 million pounds payout to one of his prominent supporters, so abusing her government position.

The money went to Bernard Tapie, a convicted football match fixer and tax dodger who supported Lagarde and Sarkozy’s UMP party.

It came after Dominque Strauss-Kahn, another senior French politician, was sacked as IMF chief following allegations that he attempted to rape a chambermaid in a New York hotel.

Ms Lagarde began campaigning to succeed Mr Strauss-Kahn soon after his arrest for the alleged crime.

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  1. not sure why the Mail is calling him a “tax dodger” – this is just blowing with the wind coming from Hodge and that PAC’s collective backside. The wikipedia article says”Tapie was also prosecuted for tax fraud.[citation needed] On 30 September 2008, a French court ended a long legal battle between Tapie and the Crédit Lyonnais bank. Crédit Lyonnais had allegedly defrauded Tapie in 1993 and 1994 when it sold Adidas on his behalf to Robert Louis-Dreyfus, apparently by arranging a larger sale with Dreyfus without Tapie’s knowledge. The court awarded 405 million euros to Tapie. This decision was partially overturned on 9 October 2006 by the Court of Cassation, the main court of last resort in France.[citation needed].”

    It also says “Tapie is a businessman specializing in recovery for bankrupted companies, among which Adidas is the most famous (he owned Adidas from 1990 to 1993); and owner of sports teams (his cycling team won the Tour de France twice and his football club the French championship 5 times in a row, and the Champions League in 1993).”

    I think the moral is that any individual who invests in sport tends not to have the cleanest of hands. This case is likely to be very very messy.

  2. RonMamita says:

    Reblogged this on Ronmamita's Blog and commented:
    Much more to come…

  3. oldbrew says:

    D Telegraph reports * government spokeswoman Najat Vallaud-Belkacem said: “I tend to think that if she is charged, [the IMF] will without doubt ask her to quit her post.” *

    ‘Dominique Strauss-Kahn, another senior French politician’…there’s the problem, those last 3 words 😉

  4. dennisambler says:

    As you have pointed out in “Roasted, toasted, fried and grilled”, Lagarde is on the AGW bandwagon.

    She was a member of Ban Ki Moon’s High Level Climate Finance Panel with the then UK Minister for Climate Change and just released from jail, Chris Huhne, plus Lord Stern of LSE and IdeaCarbon, International hedge fund operator, George Soros, Ciao Koch-Weser of Deutsche Bank and others, looking to pull in $100 billion a year from the industrialised nations for the Copenhagen Climate Fund.

    The Mail report says, “Ms Lagarde began campaigning to succeed Mr Strauss-Kahn soon after his arrest for the alleged crime.”

    Whilst this is the popular perception, she was campaigning as far back as 2009,

    “Finance Minister Christine Lagarde and Bank of France Governor Christian Noyer called for increased global coordination of currencies, joining a debate fanned by emerging markets from China to Russia”.

    “The People’s Bank of China, that country’s central bank, said June 26, (2009), that the International Monetary Fund should manage more of its members’ reserves.”

    On May 14th 2011, we had the announcement of Strauss-Kahn’s arrest on rape charges. However, not quite hitting the headlines, was this report, some nine days earlier, on May 5th.

    “Lagarde woos Asia in possible IMF push” by Anthony Rowley, Emerging Markets.

    Note the date is 5th May, Strauss-Kahn was arrested on May 14th.

    His retirement from the IMF post was not due for a further six months, so this was a strange time to be feeding the media about his replacement.

    “G20 chair Christine Lagarde’s charm offensive in Hanoi has won her significant Asian support were she to bid for the top job at the IMF, influential sources suggested to Emerging Markets.”

    On May 11th 2011, out of the Lagarde woodwork came this report from France:
    “Christine Lagarde under investigation over role in payments to Bernard Tapie” – The Guardian Wednesday 11 May 2011.

    Strauss-Kahn was arrested only three days later, on the 14th May, 2011. The French investigation would have been very problematic for Lagarde, but with the Strauss-Kahn incident, it disappeared totally from the radar.

    We then had the Strauss-Kahn media feeding frenzy, in amongst which we had this report in the UK Telegraph, “Christine Lagarde seen as ‘shoo-in’ to replace Dominique Strauss-Kahn at IMF” May 23rd 2011

    “The French finance minister has emerged as the runaway favourite to become the first woman to lead an organisation looking to quickly repair the damage caused by the resignation of Dominique Strauss-Kahn.”

    She then went on a whirlwind tour of developing nations, gaining support from Brazil, India and China, to whom she promised a seat at the IMF table and received confirmatory noises from China and Russia.

    China expresses ‘support for Lagarde IMF bid’ June 27th 2011, Russia to back Lagarde as IMF chief, June 28th 2011.

    Christine Lagarde took up her new duties on Tuesday, July 5th, 2011. Her promise to China was duly delivered in July 2011, when a former deputy governor of the People’s Bank of China was appointed as a deputy MD at IMF.

    Her contract says, “As managing director, you are expected to observe the highest standards of ethical conduct, consistent with the values of integrity, impartiality and discretion,” “You shall strive to avoid even the appearance of impropriety in your conduct.” These requirements did not appear in the contract of her predecessor, Dominique Strauss-Khan.

    As she was actually appointed with this scandal hanging over her, It will be interesting to see if she is now rescued by the UN or left to “roast and toast”.

    The Mail has already closed the article after just 33 comments.

  5. @dennisambler

    Lagarde seems to have quite a history, doesn’t she! What an amazing coterie of climate connections … not to mention some very conveniently coincidental conniving! If the UN decides to rescue her … well, she certainly wouldn’t be the first, would she?! But I don’t think it will do much to enhance the UN’s ever-shrinking credibility.

    As an aside, there’s been quite a to-do here in Canada over some really stupid moves by some Senators (one in particular, Mike Duffy a former high profile TV journalist) – and an even more stupid move by the PM’s (now) former Chief of Staff (gave Duffy a personal cheque to cover CDN$90,000 Duffy shouldn’t have claimed in living expenses, so he could pay it back) But compared to Lagarde this is peanuts!

  6. […] L’affaire Lagarde rumbles on. The lady who was recently telling us that unless we all donned sackcloth and ashes and lived in Carbon abstinence we would all be “roasted, toasted fried and boiled” has found herself in even deeper hot water than she was already. […]