It seems however that the reading of their testimony may be made

Except last minute change of heart, the civil trial of the Executive Life case will open today in Los Angeles. This will be the third act of a long case judicial, and also the most spectacular. The signature in December 2003 of an amicable agreement at the end of which the French were resigned to pay 771,5 million to escape criminal trial could let augurer another outcome. But civil mediations organized last year between the different parties have failed to sufficiently reduce the gap between them are requested by the Americans more than 3.4 billion initially and those that the French are willing to pay the 560 million paid as advances in the agreement on the criminal component. Only Artemis, the holding company of François Pinault, has managed so far to limit the scope of the proceedings against him (see below).

An amicable agreement is still possible. If recent statements of Gary Fontana, counsel for the Department of California insurance, the main complainant, "a transaction could intervene at the end of the first phase of the trial to determine whether there has been fraud or not". But pending this possible outcome, it is now a popular jury that is the difficult task of unravel the sons of this complicated case. American justice accused the French of violating local laws when resumed in 1991 by Altus, subsidiary of Crédit Lyonnais, the portfolio of junk-bonds of the insurance company Executive Life, then in bankruptcy; then the company itself by MAAF Assurances and three French investors. The rape of the regulation, if proven, the second phase of the trial would then determine the damage to this fraud.

100 hours to convince

Each camp will have 100 hours to convince, divided on almost ten weeks. With the attackers included Gary Fontana, counsel for John Garamendi, the Commissioner of insurance of California managed Executive Life in 1991 and represents its 330,000 insured; Sierra, candidate to the repurchase of the company in 1991, and Nolgha, a Fund of guarantee of the profession. On the dock, are Consortium de realisation (CDR), public structure created in 1995 to manage the bad assets of Credit Lyonnais and assume any civil conviction against the Bank; Artemis, the holding company of François Pinault, bought in Altus junk bonds in 1992 and Executive Life three years later; and finally MAAF Assurances.

It is the COR to be the more to be done to counter the accusations of the Department of insurance. The task if sensitive announcement by as much as its key Jean-François Hénin witnesses in particular can go to trial at the risk of being arrested. nor even attend by visio-Conference, since, subject to a criminal extradition request, they are considered as "fugitive" by American justice. It seems however that the reading of their testimony may be made. The CDR will endeavour to show that there were two separate transactions the surrender of junk-bonds and that of the insurance company. It is the central point of his defence, because the bulk of profits made by Altus and Crédit Lyonnais were on assignment for the junk-bonds, and not on that of the insurance company.

A random outcome

Then, the lawyers of the COR will try to prove that the ports were not illegal insofar as they had not intended to circumvent us legislation. In this regard, they recall that the transfer of the portfolio was organized by John Garamendi himself, following a call for tenders. The cross-examination of the Commissioner of insurance by the French camp should be a piece of choice of the trial. As counsel for the COR and of Artemis will do everything to prove that he was aware "on record" of these ports. Finally, the French camp will try to convince the jury of the absence of damage and victims in this case. That never fail to challenge Gary Fontana on behalf of the insured, and Sierra, the disappointed candidate to takeover of Executive Life, aggrieved and application to almost 2 billion dollars in damages and interest.

The French are well aware of the random nature of the outcome of the trial. Performed hand simulations and other show that the chances of success equal those of failure. But it is still far from the outcome of the trial and many twists and turns could be achieved by then...