Nicolas Puech is an eccentric millionaire heir of Hermès who, a while ago, adopted his gardener from one of his properties in Spain so he could inherit his entire fortune. In a surprising twist, the gardener will still be his adoptive son, but the inheritance won’t be as large as initially thought.
The octogenarian millionaire is the fifth-generation heir of Thierry Hermès, the founder of the exclusive luxury fashion brand known for its limited availability to a select few.
According to the Swiss media outlet Tribune de Genève, in the fall of 2023, the millionaire filed three lawsuits in the Geneva courts against Eric Freymond, his former wealth manager. Now, a Swiss court has dismissed Puech’s charges against Freymond for alleged mismanagement and fraud.
The Fortune That Was, And Then Wasn’t
Puech inherited 6 million Hermès shares, valued at about €12 billion ($13.2 billion). According to Swiss media reports, these shares were transferred to Swiss banks between 1998 and 2012, but their current location is unknown. The millionaire alleged that Freymond, who had managed his wealth for over two decades, had dishonestly misappropriated his fortune.
The court ruling stated that there was no evidence that the financial advisor mismanaged Puech’s fortune or deceived him, considering Puech had given the manager unlimited control of his bank accounts and freedom to manage his wealth.
Despite Puech’s claim of being unaware of the loss of his shares, the court found no evidence of deception on Freymond’s part. The judge emphasized in the ruling that Puech’s “blind trust” in his trustee didn’t necessarily imply dishonesty.
The court determined that Puech had never indicated that he didn’t understand what he was signing for his administrator. The court also criticized the billionaire for not being more attentive to the management of his estate, stating that he could have reviewed and revoked his agreement if he noticed any issues, but he chose not to do so.
It’s clear that Puech no longer has control over the 6 million Hermès shares he had inherited. These shares, which had made him the largest investor in the luxury company, were sold and transferred under Freymond’s management.
An Attack With a Delayed Effect
At this point, the mysterious disappearance of the Hermès heir’s fortune has taken on elements of a mystery movie. In this case, Bernard Arnault, founder of the LVMH empire and the third richest man in the world according to Forbes, is cast as the villain.
In 2014, Arnault attempted to acquire Hermès, sparking a conflict with the Hermès family, who were unwilling to relinquish control of their company to their main rival.
Puech broke ranks with the family’s stance and supported Arnault’s entry into the company’s shareholding. His support raised suspicions among other family members that Puech was involved in the acquisition of 23% of the company’s shares, worth over $7.5 billion. Eventually, Arnault withdrew his financial attack on Hermès.
Paradoxically, one year after Arnault’s attempted takeover of Hermès, the Hermès group announced that it was unaware of the location of Puech’s shares and requested updates on their whereabouts. As Bloomberg reported, during the company’s latest earnings presentation, Axel Dumas, the executive chairman of Hermès, revealed to analysts that they were unsure if Puech still held shares in the company. “We don’t have a way to see and control them,” Dumas stated.
The mysterious disappearance of €12 billion ($13.2 billion) worth of Hermès shares, either due to Arnault’s financial prowess or Freymond’s greed, ensures that the recently appointed gardener will never inherit them. Another millionaire’s son who won’t inherit his parents’ fortune.
This article was written by Rubén Andrés and originally published in Spanish on Xataka.
Image | Jérémy Barande | Anthony Fomin
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