Ex-Credit Lyonnais Exec Pleads Guilty in Executive Life Case

February 10, 2004

Dominique Bazy, 52, a former director of the French bank Credit Lyonnais (CL) pled guilty to one count of fraud, involving the making of false statements in the course of CL’s “behind the scenes” acquisition of the Executive Life Insurance Company in 1992.

Bazy agreed to pay a $250,000 fine and will not be allowed to enter the U.S. for three years. The settlement is the latest between CL, the French government related companies and the U.S. attorney’s office in L.A., stemming from the Executive Life takeover through companies linked to the bank. At the time of the transaction banks were prohibited from owing insurance companies under the provisions of the Glass-Steagle Act, which has since been repealed.

Under a deal reached late last year, CL, the French government and French businessman François Pinault agreed to pay a total of $770 million as part of the settlement. Several civil cases arising from the affair are still pending, as are indictmernts against other CL executives, including former CL Chairman Jean Peyrelevade.

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