The Mulliez empire, with its complex structure, has been under scrutiny for over a decade, illustrating the challenges in prosecuting financial crimes involving intricate corporate arrangements.
The case highlights the importance of legal precedents, such as the Manitou ruling, in shaping the outcomes of high-profile financial investigations.
The dismissal of charges may lead to increased scrutiny of financial practices within family-owned businesses in France, prompting regulatory changes.
The Mulliez family may seek to restore their public image and strengthen their business operations following the conclusion of this lengthy investigation.
Mulliez Empire Investigation Concludes with Dismissal of Charges
After a decade-long investigation into allegations of money laundering and tax fraud involving the Mulliez family and their extensive business empire, which includes well-known brands such as Auchan, Leroy Merlin, and Decathlon, judicial proceedings have been officially abandoned. The Parisian investigating judge issued a dismissal order on August 14, 2024, stating that the investigation failed to substantiate the claims of breach of trust or money laundering against the companies and their directors. This conclusion was confirmed by a judicial source on October 22, 2024.
The investigation, which began following a complaint in 2012 by Hervé Dubly, a former family member, scrutinized the complex financial arrangements of the Mulliez group. Dubly alleged that the family-run businesses engaged in practices involving high-interest loans without documentation, potentially allowing for significant tax reductions in France by shifting profits abroad. The opaque structure of the Mulliez companies, governed by a shareholders' agreement and comprising both civil and holding companies, raised suspicions about their financial dealings.
Despite the extensive investigations, which included searches in France, Belgium, Luxembourg, and the Netherlands, the investigating judge concluded that there was no evidence of intent to harm any partners involved. This ruling was influenced by recent case law from the Council of State, known as the Manitou ruling, which suggested that tax adjustments made by companies would likely not result in increased tax liabilities in France. The National Financial Prosecutor's Office has yet to issue a final indictment, leaving some aspects of the investigation open to appeal by the civil party.
The Mulliez family, through their association, oversees a vast network of businesses that collectively generate an annual turnover exceeding 100 billion euros and employ approximately 650,000 people worldwide. The dismissal of charges has been met with a mix of relief and skepticism, as defense lawyers for the family have opted not to comment on the case.
