IMF's Lagarde put under investigation in French fraud case

[Butifldrm]

IMF's Lagarde put under investigation in French fraud case

Wed Aug 27, 2014 8:38am EDT

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(Reuters) - IMF chief Christine Lagarde has been put under formal investigation by French magistrates for negligence in a political fraud affair dating from 2008 when she was finance minister.

Lagarde, who this week was questioned by magistrates in Paris for a fourth time under her existing status as a witness in the long-running saga, said she would contest the decision.

"I have asked my lawyer to use all recourse against this decision which I consider to be completely unfounded," she said on BFMTV. "I am returning to work in Washington this afternoon."

Under French law, magistrates place someone under formal investigation when they believe there are indications of wrongdoing, but that does not always lead to a trial.

Lagarde's lawyer, Yves Repiquet, told Reuters he would appeal the appeal the magistrates' decision and so the matter would not prevent Lagarde from doing her job at the head of the International Monetary Fund in the meantime.

The inquiry relates to allegations tycoon Bernard Tapie, a supporter of conservative ex-president Nicolas Sarkozy, was improperly awarded 403 million euros ($531 million) in an arbitration to settle a dispute with now defunct, state-owned bank Credit Lyonnais.

The inquiry has already embroiled several of Sarkozy's cabinet members and France Telecom CEO Stephane Richard, who was an aide to Lagarde when she was Sarkozy's finance minister.

In previous rounds of questioning, Lagarde has not recognized as her own the pre-printed signature to sign off on a document facilitating the payment, Repiquet told Reuters by telephone. However Richard has stated that Lagarde was fully briefed on the matter.

The offence of negligence by a person charged with public responsibility in France carries a maximum penalty of one year's imprisonment and a 15,000-euro fine.

Lagarde was a star in Sarkozy's cabinet and well-respected by peers, pushing through many of the high-profile initiatives in France's presidency of the G20 group of nations.

She has been managing director of the IMF since 2011 after her predecessor at the IMF, Frenchman Dominique Strauss-Kahn, resigned over sexual assault charges that were later dropped.

A spokesman said last year the global lender's board had discussed possible consequences of the Tapie case and determined that she would still be able to lead the fund.

Tapie, a colorful and often controversial character in the French business and sports world, sued the state for compensation after selling his stake in sports company Adidas to Credit Lyonnais in 1993.

He claimed the bank had defrauded him after it later resold his stake for a much higher sum. Credit Lyonnais, now part of Credit Agricole, has denied wrongdoing.

Investigators are trying to determine whether Tapie's political connections played a role in the government's decision to resort to arbitration that won him a huge pay-out. He has denied any wrongdoing.

http://www.reuters.com/article/2014/08/27/us-imf-lagarde-idUSKBN0GR0SP20140827?feedType=RSS&feedName=GCA-Economy2010

[sandfly]

THANKS

[Butifldrm]

IMF Chief Under Investigation in French Fraud Case

Reuters

 

Aug 27th 2014 6:59AM

Updated Aug 27th 2014 11:59AM

 

 

Jim Watson, AFP/Getty ImagesInternational Monetary Fund Managing Director Christine LagardeBy Chine Labbe

PARIS -- IMF chief Christine Lagarde has been put under formal investigation by French magistrates for alleged negligence in a political fraud affair dating from 2008 when she was finance minister.

Lagarde was questioned by magistrates in Paris this week for a fourth time under her existing status as a witness in the long-running saga over allegations that tycoon Bernard Tapie won a large arbitration payout due to his political connections.

"After three years of procedure, the sole surviving allegation is that through inadvertence or inattention I may have failed to intervene to block the arbitration that brought to an end the longstanding Tapie litigation," she said in a statement Wednesday. "I have instructed my lawyer to appeal this decision, which is without merit."

Under French law, magistrates place a person under formal investigation when they believe there are indications of wrongdoing, but that doesn't always lead to a trial.

Lagarde's lawyer, Yves Repiquet, told Reuters he would personally appeal the magistrates' decision. That means Lagarde wouldn't have to return to Paris in the meantime, allowing her to continue her duties as managing director of the International Monetary Fund uninterrupted.

"She is now on her way back to Washington and will, of course, brief the [iMF] board as soon as possible," IMF spokesman Gerry Rice said. "Until then, we have no further comment."

The inquiry relates to allegations that Tapie, a supporter of conservative former President Nicolas Sarkozy, was improperly awarded 403 million euros ($531 million) in an arbitration to settle a dispute with now defunct state-owned bank Credit Lyonnais.

The inquiry has already embroiled several of Sarkozy's cabinet members and France Telecom's chief executive, Stephane Richard, who was an aide to Lagarde when she was Sarkozy's finance minister.

In previous rounds of questioning, Lagarde hasn't recognized as her own the pre-printed signature to sign off on a document facilitating the payment, Repiquet told Reuters by telephone. However, Richard has stated that Lagarde was fully briefed on the matter.

The offense of negligence by a person charged with public responsibility in France carries a maximum penalty of one year's imprisonment and a 15,000 euro fine.

Lagarde was a star in Sarkozy's cabinet and well respected by peers, pushing through many of the high-profile initiatives in France's presidency of the Group of 20 nations.

She has been managing director of the IMF since 2011 after her predecessor at the global lender, Frenchman Dominique Strauss-Kahn, resigned over sexual assault charges that were later dropped.

Continued support

The IMF's board discussed the possible consequences of the Tapie case before deciding to select Lagarde, the board said at the time. It has continued to support her through various stages of the case.

The IMF is traditionally headed by a European, and five of the last eight managing directors have been French. But the BRICS group of large emerging markets -- Brazil, Russia, India, China and South Africa -- protested the tradition during the last selection process in 2011, saying that continued European dominance could undermine the IMF's legitimacy.

Lagarde competed for her post against Mexican central bank Governor Agustin Carstens.

The IMF's No. 2 official, David Lipton, an American, would likely take over as acting managing director if Lagarde weren't able to perform her duties.

Tapie, a colorful and often controversial character in the French business and sports world, sued the state for compensation after selling his stake in sports company Adidas to Credit Lyonnais in 1993.

He claimed the bank had defrauded him after it later resold his stake for a much higher sum. Credit Lyonnais, now part of Credit Agricole, has denied wrongdoing.

Investigators are trying to determine whether Tapie's political connections played a role in the government's decision to resort to arbitration that won him a huge payout. He has denied any wrongdoing.

http://www.dailyfinance.com/2014/08/27/imf-chief-christine-lagarde-investigation/

Edited August 27, 2014 by Butifldrm

[yota691]

"Monetary" supports Lagarde in French inquiry

Director of the International Monetary Fund Christine Lagarde

 

 

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Saturday, August 30th, 2014 - 02:28 GMT Abu Dhabi 

Abu Dhabi - Sky News Arabia

The Board of Management of the International Monetary Fund support for the Director of the Fund, Christine Lagarde, who is facing a criminal investigation in France linked to the investigation into the alleged corruption case dating back to 2008.

The French judges have decided, on Wednesday, the investigation officially with Lagarde on "negligence" after questioning in Paris for the fourth time.

These relate to the issue raised has long been allegations that the business tycoon Bernard Tapie got a huge amount of arbitration because of his political when Lagarde was finance minister in France.

The board of directors of the International Monetary Fund said in a statement: "the Board of Directors was briefed on recent developments related to this subject and still show his confidence in the ability of the fund manager to direct its functions efficiently."

 

GMT 23:55 2014 Friday, August 29th : Last Update

The supposed role in the issue of arbitration controversial

IMF renews confidence Blagard after being accused in France

 

 

 

 

Christine Lagarde

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  • 
    Christine Lagarde

IMF renewed confidence Bmderth General Christine Lagarde, after being accused in Paris on Tuesday to "negligence" in the arbitration case between a French businessman Bernard Tapie and the bank Credit Lyonnais.

Washington: The Board of Directors of the Fund, which represents the Member States Al188, in a statement, "The Board of Directors (IMF) reported on recent developments on this file, and continue to express confidence in the ability of the Director-General to take over its mission effectively."

The face of the French judiciary to French Economy Minister previous (58 years), the charge of "neglect" for its role assumed in the question of arbitration controversial between businessman Bernard Tapie and the bank Credit Lyonnais in 2008 in France, in relation to the sale of company Adidas for sports equipment in 1993 and earned Tapie time compensation from the state worth 403 million euros.

Throughout the period of investigation and listening to her testimony in Paris, the IMF is keen to assert his confidence Blagard, which took over the management of the institution in July 2011, after he forced the former director Dominique Strauss-Kahn to resign on charges of sexual assault. He did not give further comments Fund in its statement, adding that it "would be inappropriate" to comment on the issue of "consideration by the French authorities some time ago."

No resignation
after her appearance Tuesday before the Court of Justice of the Republic, Lagarde confirmed to AFP that it does not intend to resign from her position, saying that it filed an appeal against the accused, who considers that the "unfounded". "After three years of investigation, and dozens of hours of listening processes, the Committee recognized me from not any violation, therefore, had to say that I was not totally vigilant."

The investigating judges whether the decision of the arbitration leavin star of "placebo", organized by the authorities at the time, in order to reward the TAPI support for former French President Nicolas Sarkozy. Denied Lagarde always be acted on the instructions of the former president.

[waterman13]

The whole "monetary system" is a fraud.

I believe monetary reform is coming, when? I don't know.

I just hope and pray the RV comes before the US Dollar tanks.

Wm13