Corruption is in the room: Princely debate over real estate and power in Monte Carlo

Background: In autumn 2021, the website “Les Dossiers du Rocher” (Rock Dossiers; the term “Rocks” is a synonym for Monaco) will be launched. Thousands of hacked emails and documents were leaked from four influential men in the principality: Claude Palmero, the prince’s family’s former wealth manager, Thierry Lacoste, Prince Albert’s childhood friend and lawyer, Laurent Anselmi, the former head of Albert’s cabinet, and Didier Linotte, President of the Supreme Court of Monaco.

Who is behind the leaks?

Accusation: All four used their influence to line their pockets, for example in real estate projects, and recruit followers to the detriment of the principality. There are accusations of corruption. All four protest their innocence and defend themselves with defamation charges. In the summer, Prince Albert took action and, among other things, fired his longtime asset manager Palmero. The royal family recently filed criminal charges against him.

After all, this dispute is about Monaco’s toughest market: the real estate market. The average price per square meter here is around 50,000 euros. The development of new land through sea embankment and the sale of flats on these new lands are therefore seen as a kind of money printing machine.

That’s why Monaco real estate billionaire Pascal Pastor is suspected of being behind the leaks, which he denies. The four-man gang is said to be angry that the competition is awarding promising real estate projects.

Complaint to the stock exchange supervisory authority

The dispute now extends to listed SBM. In June, Pastor filed a complaint with the French stock market regulator AMF. There is an accusation that the then-board of directors and the prince’s lawyer, Thierry Lacoste, received fees from SBM contractors without disclosing this conflict of interest.

Pastor was one of the major shareholders of SBM, which includes French luxury giant LVMH, with 5 percent. In the autumn of 2022, Pastor wanted to join the board of directors of Monaco’s most important company, but Lacoste and its allies prevented this. Instead, former parliament speaker Stéphane Valeri became administrator. At the beginning of the year, Valeri took over the operational management of the group as a board delegate.

The Pastor now suspects that Valeri’s appointment was also based on the controversial network of his opponents. Sources close to the Pastor point to the timing of the controversial real estate project called “Esplanade des Pêcheurs”, in which Valeri is said to have played a role, as evidence of this thesis.

Suspicious passage of time

The project, which will include 23 flats as well as shops and a museum, was transferred to Pastor’s rival Caroli. In the project, the state of Monaco transfers the construction site to the real estate developer. A parliamentary decision was required for this privatization. This took place in July 2022, when Valeri was still the Speaker of the Parliament. He became a board member at SBM in September and became the casino operator’s operational boss at the beginning of 2023.

Does this prestigious position owe to Valeri’s passage of the sensitive bill through parliament? When asked about this issue, SBM talks about “unfounded claims” and “complete disinformation”. Valeri was elected as the new delegate of the board in January by the entire board of directors, and therefore the representatives of the principality. However, Thierry Lacoste was still serving as the principality’s representative in VR at the time, but lost his job following the revelations.

According to a spokesperson, SBM is unaware of any complaints with the Paris Stock Exchange Supervisory Authority (AMF). The AMF itself did not comment on this when asked.

So what do luxury giant LVMH and SBM shareholders think about the allegations? It seems that Bernard Arnault’s empire does not want to be dragged into this mess and is keeping quiet. Numerous emails and text messages seeking comment went unanswered.

The struggle between the billionaire priest and his rivals is a struggle for power, money and influence. It’s too good a topic to be covered only in the tabloid press.