Major French Real Estate Scandal Trial Implicates Morocco, Involves 762 Victims

A new hearing is taking place on Monday. At the stand, Jean Badache, 70, the main defendant, accompanied by his wife Viviane, 68, and their son Benjamin. This commercial director and de facto manager, along with 13 other people including a lawyer and three notaries, and a company are being prosecuted for organized fraud, forgery and use of forged documents, and organized money laundering. They allegedly collected about one billion euros from the sale of more than 5,000 properties to 762 victims. These victims are represented by 110 lawyers in this massive scam dating back to 2008.

During the 15 years of investigation and instruction, more than 7.5 million euros have been seized in France, Switzerland, Luxembourg, and Morocco, reports Le Parisien. Four real estate properties have also been seized in France and one in Morocco, as well as luxury items. The defendants face up to ten years in prison and a fine of one million euros. The company Apollonia, based in Aix-en-Provence and specialized in real estate tax reduction consulting, risks up to five million euros in fines. This company was created in the mid-2000s by Jean Badache, his wife (a real estate agent), and his son.

The defendants managed to convince individuals - doctors, dentists, and paramedical professionals - to subscribe to self-financed real estate investment projects. With falsified documents, they obtained real estate loans from banks. Except that "the promised self-financing was only a mirage," summarizes the judge’s order. The clientele finds itself heavily indebted.

During this fifth week of hearings, Badache is put on the spot. "I admit to having bought a lot of jewelry for my wife, they were seized even those she was wearing," he blurted out before describing at length his way of working. "If we are convicted, I am well aware that we will not be given anything back and that we will be left as bare as a Christmas turkey," added the one who is being prosecuted for "organized fraud," "forgery: fraudulent alteration of the truth in writing," "use of forged documents," and "aggravated money laundering."

The main defendant has long incriminated the victims. "These people did not commit lightly," he continued, denying any "harassment or aggressive solicitation," insisting on the role of clients who are now civil parties. "They didn’t ask questions even months after signing powers of attorney. I’m addressing people who have a level of education that is not that of an unskilled worker or laborer in a company, but people who have 7 to 10 years of study, they are not illiterate. They can say yes or no!"

These statements provoked the irritation of Jean Imbert, vice-president of the victims’ association. "He lacks neither gall nor imagination. He lies a lot or else he is totally incompetent. Does being a good salesman allow you to take advantage of the naivety or trust that investors have placed in you, to send files to several banks while hiding that other loans are being requested," he denounced. "We have heard testimonies from salespeople and Apollonia staff, we know he’s lying. He was the one at the head of everything, he was piloting and everyone had their little finger on the seam of their pants."

The trial will continue until June 6.