Court tosses elderly Hermes heir’s $13B fraud claim against ex-wealth manager

investmentnews.com:

An octogenarian heir to the Hermès luxury fortune, who sparked controversy last year over a plan to leave his money to his gardener, may not have much to give away after all.  

In the latest twist to the longstanding mystery surrounding Nicolas Puech’s billionaire status, a Swiss court this month threw out the 81-year-old’s allegations that his former wealth manager had a role in his fortune’s disappearance.  

Puech’s lawyers told the court he no longer owns the assets in question: about 6 million shares worth roughly €12 billion ($13 billion) in family-controlled Hermès International SCA. The stake would make him the single largest investor in the purveyor of Birkin handbags and colorful silk scarves founded in 1837. The company has since expanded into one of the biggest players in the global luxury industry and made the Hermès family Europe’s wealthiest. The clan, which counts more than 100 members, has a net worth of about $155 billion, according to the Bloomberg Billionaires Index. 

The decision by an appeals court in Geneva on July 12 found no evidence that financial adviser Eric Freymond mismanaged Puech’s fortune or that the reclusive fifth-generation Hermès heir was duped over a period spanning more than two decades during which time at least some of the stock was sold. 

“The ‘gigantic fraud’ to which he was victim was undetectable to common mortals,” the court document read, adding that the allegations lacked clarity and were insufficiently backed up.  

A lawyer for Puech, Gregoire Mangeat, declined to comment, while Freymond’s lawyers, Yannis Sakkas and Stephane Grodecki, said their client was satisfied with the outcome that included “harsh words” against the plaintiff. The case was first reported by online