One of Europe’s wealthiest bankers faces questioning for fraud in France as part of a years-long case that accuses him of defrauding retirees.
Baron David de Rothschild, one of the wealthy members of the famous Rothschild banking dynasty, was indicted last month over allegations that his company, Rothschild Financial Services Group, offered a fraudulent equity release loan program to about 130 retirees between 2005 and 2008. 20 British retirees living in Spain brought the fraud lawsuit, according to Olive Press, an English-language newspaper published in that country, but it’s taken five years of legal maneuvering to successfully force the Baron into court.
Rothschild Financial Services Group is accused of falsely advertising the scheme, under which retirees were told they could reduce the value of their French homes in order to reduce the inheritance tax that their descendents would for those properties. According to the report, France’s “Tax Agency ruled that such a scheme constitutes fraud.”