According to reports, new details have emerged about the core relationship in what could become the "fraud of the century" involving the disappearance of $15 billion—the largest individual stake in Hermes International SA. The information comes from testimonies by Hermes heir Nicolas Puech and Swiss wealth manager Eric Freymond, along with legal documents and accounts from people who knew them both.
Earlier this year, French authorities interviewed Freymond about his relationship with Puech, who had granted him practical control over his fortune exceeding $15 billion. Freymond then dropped a bombshell: he claimed they were lovers.
Puech, however, dismissed this as a lie—one of many fabricated by Freymond over the years to weave a fictional narrative around his client. The 82-year-old fifth-generation Hermes heir told French investigators that his financial advisor was not a romantic partner but a trusted friend who gradually became a "Svengali-like figure," isolating him from friends and family while siphoning off his wealth.
Puech alleged that by cutting him off from anyone who might expose the deception, Freymond maintained the illusion that he remained one of Europe's wealthiest individuals. "He turned out to be a fraudster, even a gangster," Puech told the judge.
When asked about his current financial state, Puech revealed he had applied to sell his shares in a Hermes real estate subsidiary worth about $1.2 million. "Beyond that, I have nothing left," he said.
Freymond—married with two daughters—died at age 67 in July after being struck by a train near the Alpine village of Gstaad, in what local police ruled a suicide. Before his death, Puech had sued him in Switzerland and France. The whereabouts of Puech’s fortune are now the focus of a criminal investigation led by Paris judges, with Puech cooperating to recover some assets.
Freymond had faced prior misconduct allegations during his career.
Mounting Pressure In the weeks before his death, Freymond faced escalating legal and financial pressure. French investigators accelerated their probe, questioning him in Paris on July 7—two weeks before he died. During testimony, Freymond admitted to selling most of Puech’s Hermes shares to rival LVMH over a decade earlier, a move long suspected by observers. He claimed Puech was aware, but the heir denied this, citing documents where Freymond repeatedly assured him his wealth remained intact.
That same day, a Geneva court froze Freymond’s bank accounts. Five days before his death, the freeze extended to artworks, sculptures, and furniture in his Geneva home.
The Unraveling: A Missing "Million-Franc" Transfer The deception began to unravel in summer 2022 when Puech, during a routine financial discussion at his Swiss mountain estate, asked why his longtime handyman Jadil Butrak and wife Maria Paz hadn’t acknowledged a 1 million Swiss franc ($1.25 million) transfer.
Puech found it odd. Freymond explained that the handyman was "embarrassed about money," but Paz, overhearing the conversation, later told Puech the truth: no such transfer existed.
Early Deceptions Freymond’s misconduct dated back decades. In the 1980s, he married into Geneva’s elite and worked at private bank Ferrier Lullin & Cie, where his father-in-law, Guyvan Berchem, was a partner. Despite his privileged position, colleagues recalled red flags—Freymond frequently used pre-signed client forms for withdrawals, leading to discrepancies. An audit revealed 1.3 million francs missing, resolved quietly with his father-in-law reportedly covering the losses before Freymond left the bank.
Berchem also introduced him to the Hermes family.
The Hermes Heir and His Wealth Manager Puech, part of Hermes’ fifth generation, trusted Freymond due to his family’s Geneva reputation. "I was completely blind to his integrity," he said. In 1999, Freymond advised Puech to move his Hermes shares from France to Switzerland as unregistered bearer shares—untraceable paper certificates. That year, Puech signed sweeping authority allowing Freymond to manage and dispose of his assets.
LVMH’s Role and the "Sold Family Shares" After losing a bid for Gucci, LVMH CEO Bernard Arnault secretly amassed Hermes shares—a maneuver allegedly facilitated by Freymond. Puech’s 6% stake, worth €528 million in 2006, was pivotal.
Puech insists he never authorized selling his inherited shares. Yet French regulators found Freymond had transferred 4.8 million Hermes shares to entity Dilico, later sold to LVMH at €86.66 per share—now worth over €2,000 each. Had they been retained, Puech’s stake would exceed $15 billion today.
Isolation and Control Freymond increasingly controlled Puech’s life—screening mail, answering calls, and isolating him within a tight circle including lawyer François Besse. A 2017 memo (purportedly from Besse) warned Puech against contacting family or traveling to France without approval, citing legal risks.
The Money Trail An FTI audit showed: - By 2013, Puech held 535,899 Hermes shares (€134.4 million). Over the next decade, they vanished. - Funds flowed to Freymond-linked entities: €35.8 million through a joint account (mostly diverted to Freymond’s investments and art purchases), €7 million paid directly to Freymond in 2015, €25.8 million invested in African hydrogen firm Hydroma, and €7 million to Besse.
Desperate Measures In his final years, Freymond allegedly forged signatures to secure €20 million in loans from a deceased client’s estate, funneled into Hydroma and Moderna stocks (losing €500,000). He even attempted to counterfeit 6 million Hermes shares for sale to Qatari investors—prompting a lawsuit Puech only learned about via news reports.
The Final Blow Puech recently discovered his primary residence in Ferret wasn’t his—it belonged to foundation Isocrates, which he’d unknowingly ceded control to. "I must have signed papers," he said, "but I didn’t realize it."
Offered to repurchase it for 1 franc, Puech refused: "I won’t buy the same house twice."
Comments