Italian multimillionaire Nicola Bulgari convicted of insider trading

< /p> UPDATE DAY

The Italian multimillionaire Nicola Bulgari, former director of the Bulgari jewelry store, owned by the LVMH group, was sentenced in Paris on Tuesday to a fine of 1.2 million euros and his company Tara to 5.5 million euros, for stock market transactions in connection with the luxury giant in 2016.

The sentence, negotiated with the National Financial Prosecutor's Office (PNF) as part of a preliminary acknowledgment of guilt procedure, also provides for a nine-month suspended prison sentence for Mr. Bulgari, convicted of the offense of insider.

These sentences were approved by a judge of the Paris Court of Justice.

82-year-old Mr. Bulgari admitted having carried out purchase and resale of LVMH shares based on information obtained on July 5, 2016 on the growth of the luxury giant.

Between July 12 and 18, 2016, Mr. Bulgari acquired 20,000 LVMH shares in three transactions through two financial operators, JP Morgan and the Banca nazionale del lavoro (BNL).

The Tara, a property company specializing in finance and real estate, bought 82,600 shares between July 6 and July 15 in eight transactions.

All the shares were sold on July 27, 2016. The day before, LVMH had announced strong growth, leading to a rise in the stock market.

The former jeweler was thus able to realize a capital gain of 292,400 euros, and his company of 1.4 million euros.

LVMH, the world leader in luxury, has more than 75 brands including Bulgari, acquired in 2011 from the brothers Paolo and Nicola Bulgari. At the time of the events, the two brothers no longer sat on the board of directors.

“I am 82 years old, I have very little memory” and “I do not remember the people who m 'suggested to do that,' he replied with annoyance to the insistent questions of a French judge, to find out how he had obtained the information of the announcement of an increase in LVMH sales.

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“I recognize what I did, I feel guilty”, he ended up throwing, seeming to want to put an end to the questions and to ensure that the sentence would be approved. He thus avoids a hearing before the criminal court.

The investigations did not identify who had informed Mr. Bulgari of the rising results of LVMH.