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CRIME

French police break-up fake Bordeaux wine ring

Police investigating drug-trafficking in south west France have broken up a counterfeit Bordeaux wine ring following an eight-month investigation.

French police break-up fake Bordeaux wine ring
Photo: Kelsey Knight / Unsplash

Prosecutors said that 100 gendarmes were involved in an operation to arrest up to 20 suspects in seven départements after the fake wine scam was discovered when fake wine labels were discovered by officers investigating a drugs ring. 

During searches, a dozen vehicles and, “a large volume of wine” were seized, they added.

They estimated that several hundred thousand bottles of Spanish wine had been passed off as being from the Médoc wine region of France.

Investigations involving a dedicated police unit revealed “a large-scale fraud organised by the owner of a vineyard in the Médoc”, police said, who obtained wine via “Spanish contacts”, bottled it at night and put fake labels on the bottles.

The fake wines were then sold “by the pallet” in several areas via “a network of official and unofficial distributors made up of companies, pensioners and self-employed people”, according to prosecutors. 

Orders amounting to several thousand bottles were sent abroad, with customers believing they were buying Bordeaux chateau wines at bargain prices, prosecutors said, when the bottles really contained “low-end wines …. from remote areas”.

Three suspects, including someone described as the ‘main instigator’ appeared before an examining magistrate on Wednesday and was charged with a variety of offences linked to fraud.

A source close to the case told AFP that the counterfeiting targeted mid-range Médoc wines, which are easier to counterfeit than the grand crus. 

“If the facts are proven, we hope that the perpetrators will be heavily condemned because these practices harm the image of Bordeaux wines and the image of all those who work well and respect the rules,” reacted the Interprofessional Council of Bordeaux Wine contacted by AFP.

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BANKING

Danish bank to pay millions to end French laundering probe

Denmark’s largest bank has agreed to pay a multi-million sum to end legal pursuits in France linked to alleged money laundering in its Estonian subsidiary that resulted in heavy US penalties

Danish bank to pay millions to end French laundering probe

Danske Bank will pay €6.3million (47million kroner) to end French financial authorities’ investigation.

An independent auditor’s report published in 2018 alleged Danske Bank’s Estonian unit allegedly laundered some €200billion through 15,000 accounts from 2007 to 2015.

The payment was agreed on August 27th with France’s national financial crime prosecutors and validated by a court on Wednesday. The agreement does not involve any admission of guilt.

Danske last December pleaded guilty in the United States and paid a $2billion fine.

The bank last October set aside an amount roughly equal to its US fine in expectation of legal pursuits in several countries.

Probes are underway in Estonia, Denmark, and Britain.

France charged Danske in 2019 with organised money laundering, which it denied, saying it was unaware of its Estonian subsidiary’s activities.

Tracfin, the French finance ministry’s anti-money laundering unit, found suspect movements on two accounts linked to a Franco-Russian businesswoman who has since been handed a two-year suspended sentence.

At Wednesday’s hearing, Danske’s counsel Niels Heering said his institution was “happy to reach this accord which for us is a way to close this chapter”, adding that “cracking down on financial fraud remains a priority” for the bank.

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