French tycoon's Bernard Tapie assets to be seized in fraud probe

Judges have ordered a Mediterranean villa and other assets to be seized from a French businessman at the centre of a fraud investigation that could weigh on ex-president Nicolas Sarkozy's hopes of a comeback.

Bailiffs will confiscate assets worth tens of millions of euros belonging to tycoon Bernard Tapie, in a move that suggests investigating judges believe they have evidence of fraud in a €403 million (HK$4 billion) arbitration payment he received in 2008 under Sarkozy's presidency.

Judicial sources said the property seizures were standard procedure to prevent Tapie, 70, from selling assets during the investigation. The tycoon retains ownership of the assets.

Le Monde reported that among the assets are life insurance policies worth €20.7 million, shares worth €69.3 million in a Paris mansion and a villa in Saint Tropez worth €48 million.

Finance Minister Pierre Moscovici said the Socialist government, which took power after Sarkozy's defeat last year, had asked for "protective measures" to be taken in case reparations needed to be made to the state.

Tapie, who has been under formal investigation since June 28 on suspicion the arbitration payment may have been rigged, has denied any wrongdoing.