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Arnault testifying at trial of ex-French spy chief

Squarcini

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Squarcini accused of illegal surveillance when working for

LVMH

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Squarcini has denied wrongdoing; LVMH settled a case in

2021

(Updates with details from Arnault testimony)

By Juliette Jabkhiro and Mimosa Spencer

PARIS, Nov 28 (Reuters) - LVMH Chairman and

CEO Bernard Arnault told a Paris court on Thursday he didn't

know about allegedly illegal surveillance ordered by a trusted

associate almost a decade ago, as he testified at the trial of a

former French spy chief.

Bernard Squarcini, who headed France's domestic security

services from 2008 to 2012, was later hired by luxury goods

giant LVMH as a security consultant.

He is accused of illegally collecting information on private

individuals and violating privacy laws while helping the company

fight counterfeits and monitor left-wing activists planning to

target the company with protests.

Lawyers for Squarcini said he would plead not guilty.

Arnault, one of the world's richest people, is not accused

of any wrongdoing in the trial. LVMH paid a 10 million euro

($10.5 million) settlement in 2021 to close a criminal probe

into the company's role in the case.

But the case has cast light on the lengths to which the

company has allegedly gone to protect its image. LVMH declined

to comment on the case and Arnault's lawyer did not respond to a

request for comment.

Replying to prosecution questions on Thursday, Arnault said

he was unaware of actions taken by Pierre Gode, his longtime

right-hand man at LVMH who died in 2018. He has previously said

that Gode hired Squarcini.

"It's not for me to judge what Mr Gode could have done. I

was absolutely not aware," he told a full courtroom, adding that

the company has a clear policy of following the law.

"I imagine he acted according to the (company's) rules," he

said.

The two-week trial has thrust Arnault into the spotlight at

a time when his sprawling luxury empire is grappling with a

downturn in the industry and a reshuffling of top management to

make way for his children.

Eldest son Antoine Arnault and two other executives were in

court watching the testimony.

LVMH paid Squarcini's consulting firm Kyrnos 2.2 million

euros for services including allegedly searching the background

of individuals suspected of counterfeiting luxury goods.

Squarcini also allegedly monitored Francois Ruffin, a French

activist who is currently a politician, and members of his

left-wing publication Fakir as they planned to disrupt an LVMH

shareholder meeting and prepared their satirical, documentary

film "Merci Patron".

The film, which won the French Cesar award for best

documentary in 2017, follows family members that lost their jobs

at a supplier to LVMH.

Asked about Ruffin in court, Arnault said he watched the

film and found it "very funny".

($1 = 0.9495 euros)