French justice finally catches up with 1855 and its president

Emeric Sauty de Chalon

The AMF (Autoritées Marchés Financiers) have fined Héraclès, previously called 1855, and its founder and president, Emeric Sauty de Chalon, 350,000€ for supplying false and inaccurate information to the Paris Stock Exchange, so misleading investors.

On the 10^th March 2015 the AMF fined Heracles 200,000 € and Sauty de Chalon 150,000 €. The fines could have been much higher but the AMF took into account the financial situation of both Héraclès and Sauty de Chalon.  

The AMF started its investigation into the company in February 2012 looking at statements to the Paris Stock Exchange from the end of 2009. The AMF found that financial statements that 1855 claimed had been audited were not.

The company’s financial health was consistently overstated in its accounts for 2009, 2010 and 2011. Nor were the possible consequences of the numerous lawsuits brought by frustrated clients over 1855’s failure to deliver Bordeaux en primeurs and other wines properly spelt out. 

1855 bought Cavé Privée in July 2010 but in contravention of the Exchange rules Sauty de Chalon did not announce the acquisition until 30^th November 2010. Furthermore, when announcing the purchase Sauty de Chalon overstated Cave Privée’s financial performance by a factor of four. 

Heracles went into administration in October 2013 before finally being put into liquidation by a Paris court on January 2015.  

Sauty de Chalon maintains that he did not benefit financially through 1855’s failure to supply wines its customers ordered.

It should come as no surprise that Emeric Sauty de Chalon and his company regularly lied and provided inaccurate information to the Paris Bourse so seeking to mislead investors. After all they lied to their customers on an industrial scale so why should the Paris Stock Exchange be any different?  

1855/Héraclès finally bust but many, many questions remain to be answered!

Emeric Sauty de Chalon  

Founder and PDG of 1855 renamed Héraclès 

 August 2012: 1855 on France2 – labelled ARNAQUE

Fabien Hyon, managing director of 1855 – Héraclès group 

Last Friday's final collapse into liquidation of Héraclès/1855 is good news as Hélène Poulou, the tenacious Bordeaux lawyer who has pursued this scam for a number of years, says.

Whether her nearly 400 clients will get much of the around €5 million, excluding damages, they are owed is another question. Poulou's clients paid around €1.2 million for wine they never received. The figure of €5 million is based on the current value of the wine ordered as well as the various fines that were imposed on the Héraclès group due to their failure to deliver.

How much, if any, of the more than €40 million claimed by over 11,000 clients of this long-running scam will they ever see?

Two of a host of questions that the long-running scandal of 1855/Héraclès raises.  

Here are a few more:

1855's failure to deliver wines, especially en primeur Bordeaux, date back at least to the 2002 vintage. Although the serious problems started following the 2005 vintage, when the prices shot up and Hyon and Chalon's decision to sell short blew up in their faces – or strictly speaking in the faces of their unfortunate clients. Yet despite an ever increasing volume of complaints, legal action and coverage in the media – print, TV and on-line, Hyon and Chalon were permitted to continue to fleece their clients to the end of 2014. 

Why wasn't this scam closed down much earlier?

Why no action from the Répression des Fraudes despite receiving complaints dating back years? 11,000 clients fleeced to the tune of over €40 million would seem to be reasonably significant.....

Héraclès/1855 went into administration in October 2013. Although it was clear that Emeric Sauty de Chalon and Fabien Hyon were a pair of deliquents and not fit to run any business, the Tribunal de Commerce de Paris allowed them to continue to involved in running the company.    

 

Did Emeric Sauty de Chalon and Fabien Hyon enjoy hidden high-level protection from within the French establishment? Did having Jean-Pierre Meyers as a long time shareholder perhaps provide them with a shield?

Did this protection extend into the Tribunal de Commerce de Paris who inexplicably waved through the innumerate and clearly inadequate business recovery plan. The mysterious PLF1 group based in Luxembourg offered only a total of €2.5 million yet the claimed debts totalled over €40 million. The €2.5 million was to be paid in two tranches – €1 million and then a further €1.5 million once the recovery plan had been accepted. Many clients who had ordered Bordeaux Cru Classés were to be palmed off with bottles of 2012 Bordeaux Supérieur, while the larger creditors were to be repaid over 8 years with the repayments weighted towards the end of the repayment period. 

In September 2014 the Tribunal accepted the assurances of an apparent 'representative' of PLF1 that the promised funds would be forthcoming. Yet in early December 2014 PLF1 informed the Tribunal that the person who gave the court the assurances back in September did not work or speak for PLF1!

Little is known of the shadowy PLF1. Was this a desperate late ditch ruse by Emeric Sauty de Chalon and Fabien Hyon? Or was it, perhaps, a life boat constructed by one or more of Chalon and Hyon's well connected former shareholders?  

Despite all this why did the Tribunal de Commerce de Paris become complicit in this long-running scam when they gave Emeric Sauty de Chalon and Fabien Hyon the green light to go on their merry ways and continue to fleece their unfortunate clients? 

Is the Tribunal de Commerce de Paris always this incompetent or was this a one off?    

  

Will French justice now at long last catch up with the two delinquents – Hyon and Sauty de Chalon? Will there now be a serious investigation into what happened to all the money paid to Emeric Sauty de Chalon and Fabien Hyon's companies for wine that was never bought or delivered? Did Emeric Sauty de Chalon and Fabien Hyon simply just trouser large dollops of cash or was it spent on glamorous parties and launches?  
 
Earlier post on the liquidation.

A suivre! 

 

1855.com allowed to continue despite Deputy Prosecutor General's advice

Emeric Sauty de Chalon

Fabien Hyon

France 2 TV programme called 1855 a fraud (arnaque)

Despite their appalling and well-documented trading history – taking money for wines that all too often are not delivered or years too late, Emeric Sauty de Chalon and Fabien Hyon were given permission on 18th June 2014 by the Tribunal de Commerce de Paris to continue running their 'businesses', although 1855 and Chateauonline remain in administration. This depite the advice and opposition of vice-procureur générale (Deputy Prosecutor General) Mme Garrigues.

See article here in La Revue du Vin de France: 

'A la surprise générale, mercredi 18 juin, le tribunal de commerce de Paris a finalement acté la poursuite d’activité de 1855 et ChâteauOnline, maintenus en redressement judiciaire. Nous déconseillons très fortement à nos lecteurs de commander des vins sur ces sites.'

I entirely agree with the LAVF's very strong advice not to buy from either 1855 or Chateauonline. Indeed, given the history, anyone who does order from 1855 or Chateauonline may be clinically insane! 

News update on 1855 – the frauds appear to continue!

Domaine de Chevalier, Pessac-Léognan 

Ordered: 1 bouteille Domaine de Chevalier 2007 – Pessac Léognan rouge : 39,95 € 

A very recent article in Que Choisir demonstrated clearly that the difficulties and frauds associated with 1855 continue even though the company is in administration. Through an intermediary Que Choisir placed an order for wine that should have been delivered within 24 hours – the wine was supposed to be in stock and available. However, a month later they were still waiting delivery of their wines. Impossible, of course, to contact anyone at 1855.

Hardly surprising as serial fraudsters Emeric Sauty de Chalon (Président du conseil d'administration) and Fabien Hyon (Directeur général) have been retained to run the company despite the very long litany of complaints and a host of legal actions against 1855! Friends in high places?  

Que choisir article:

'1855.com

La coupe est pleine

Que Choisir alerte régulièrement ses lecteurs sur les pratiques commerciales douteuses de 1855.com. Malgré plusieurs procédures en cours (dont une plainte déposée par l’UFC-Que Choisir), ce site de vente de vin en ligne est toujours en droit de poursuivre son activité. Actuellement en redressement judiciaire, la société est en période d’observation. Honore-t-elle pour autant ses commandes ? Pas vraiment.'

Curiously within ten hours of this article appearing on line three of the four wines ordered were delivered. I suspect if it wasn't for the article the person who had ordered the wines would still be waiting for them to be delivered. In any case 1855 – Hyon and and de Chalon – were only able to cobble together three of four wines ordered – all, of which, were supposed in stock. Arnaque toujours! 

The other news is that finally a preliminary investigation into the 1855 fraud has been set up. I don't hold up much hope that both Emeric Sauty de Chalon and Fabien Hyon will be brought to justice as I suspect they still have well-connected friends in high places providing them with protection. 

There is also an interesting interview here with Hélène Poulou, the Bordeaux lawyer who represents some 300 fleeced clients. Also here there are further reflections on the persuasive charm of fraudster Emeric Sauty de Chailon. 

http://www.boursier.com/actions/actualites/news/heracles-ex-1855-le-parquet-de-paris-ouvre-une-enquete-preliminaire-570729.html

http://patrimoine.lesechos.fr/patrimoine/art-collection/marche-art/0203405616733-vin-la-descente-aux-enfers-de-1855-660624.php

http://www.lesechos.fr/entreprises-secteurs/service-distribution/actu/0203377499212-1855-la-pyramide-de-ponzi-du-vin-657558.php

1855: is the Paris court hand in glove with Emeric Sauty de Chalon and Fabien Hyon asks LARVF?

Fabien Hyon – still in post 

I wouldn't trust this man even a small fraction of an inch!

Emeric Sauty de Chalon – still in post

La Revue du Vin de France asks whether fraudsters Emeric Sauty de Chalon and Fabien Hyon are being protected by the Tribunal de Commerce de Paris. 

'Scandale 1855.com : ses dirigeants sont-ils protégés ?
Pétition d’avocats, plaintes qui n’aboutissent pas, soupçons de complaisance. Depuis le placement en redressement judiciaire des sociétés du groupe de vente de vins en ligne, les faits troublants s’accumulent. Certains avocats des victimes jugent que l'attitude du tribunal de commerce de Paris est partiale.'

Amazingly Fabien Hyon and Emeric Sauty de Chalon have been allowed by the court to form a new company called BGV!

 

Read the rest here:

The shrinking share value of Heracles – previously 1855

 Shares in Heracles trading@0.03€ – valuing company at 1.89€ million

Shares in Heracles (ex-1855) closed on the Paris Bourse at 0.03€ per share. The company is now valued at just 1.89€ million. This compares with 28.25€ million on 19th June 2012 when it was still 1855. Six months ago the shares were at a high of 0.12€ – they have fallen by 62.50% since then.    

 1855 with a share value of 28.25€ million (19.6.2012)

ChâteauOnline, a subsidiary of Héraclés (1855) in administration

 Shares in Héraclés have now fallen to 0.04€ 
(http://www.boursorama.com)

On 22nd October 2013 ChâteauOnline, a subsidiary of Héraclés (1855) which was bought by the group in March 2011, also went into administration. Like 1855, ChâteauOnline had recently changed its name to Arès, the Greek god of war. Clearly, the change to a classic heroic name, wasn’t sufficient to provide protection from its creditors and the various legal actions against it.

In the first instance the period of administration is for six months. For Héraclés this will run until 7th April 2014, while Ares will be until 22nd April 2014. Gérard Philippot has been appointed administrator and Maître Stéphane GORRIAS of BTSG (Paris) as legal representative of both companies.

The internet sites of the various companies continue to be live and it remains to seen whether the other subsidiary companies  – Cave Privée and Caves de la Transat – will also go into administration.

Shares in 1855 (recently renamed Héraclés) continue to be traded on the Paris Bourse but the price has dropped from 0.09€ (8.10.13) a share to 0.04€ (29.10.13). The company is now valued at just 2.52 million euros. In early July 2012 the company's share capital was worth 20.15€ million. Even six months ago a share was trading at 0.13€. Over this period the share value has dropped by 66.67%.

   The Chateauonline site is still up but 

why take the risk of buying from a collapsing group? 

1855 – looks like the hi-wire act is finally over

8.10.2013 – the 1855 site still functions

Finally the increasingly jawdropping history of 1855 appears to be over as the group has gone into administration today. Apparently 1855's management initiated this move seeking protection from its multiple creditors. Hopefully this is just the start and that Emeric Sauty de Chalon and Fabien Hyon will be brought before the French courts charged with fraud.

Shares in 1855 continue to be traded on the Paris Bourse but the price dropped a little today from 0.09 a share to 0.08.

See details below:

La SA 1855 en redressement judiciaire - Terre de Vins

Vente de vin en ligne : la société 1855 en redressement judiciaire - SudOuest.fr

1855 en redressement judiciaire : l’angoisse des clients floués - La Revue du vin de France

Also here on the Bon Vivant blog (Nicolas de Rouyn).

See also discussion on La Passion du Vin:

Comment from someone who is still waiting for their Bordeaux primeurs:

I am not sure if you have seen, but I get at least two emails such as these from Chateauonline daily.

They seem to have stepped up their marketing campaign in the last month, clearly they are trying to drum up revenues.

I do not believe in coincidences, but DDG instructed some Huissiers to actually go and seize assets of both 1855 and Chateauonline (procédures d'exécution forcé) to try and settle my outstanding delivery in addition to whole load of others plaintiffs, but this was not successful.

So DDG have pooled together various plaintiffs and have started another procedure, to be heard on 24 October 2013, called une assignation en redressement judiciaire which I think is the first steps towards forced liquidation. To be honest, I am not 100% sure of that, you would need to check with a lawyer in France as to what this means, but I know that this is serious and if 1855 ignore this, I am fairly certain that this is the end of the line for them.

If you ever needed any confirmation of the crookedness of this firm, this latest marketing campaign must be it. DDG is of the opinion that they will come to the hearing on 24 October 2013 armed with a cheque to settle their current outstandings. In my view, the only way that they can do this right now given their cashflow is by financing this by recent sales such as the one below, assuming that they can dupe other poor souls.

 

1855 – is the fraud nearly over?

It looks possible that the 1855 group (now renamed Héraclés) may be coming to a well deserved sticky end as property (computers etc.) and wine belonging to the group was seized recently as reported by mybettanedesseauve (Michel Bettane and Thierry Desseauve). The small quantity of wine seized was auctioned this morning by auctioneers Drouot in Paris. It is not clear whether this collection of odds and sods – only two complete cases – was the entire stock of the 1855 group. If this was the case it certainly wasn't a Herculean task to remove it from 1855's offices at 10 Rue des Moulins, Paris. 2008 Connetable de Talbot (12 bottles) and 2007 Sociando Mallet (6 bottles) were the only two complete cases.

However, shares in 1855 are still trading on the Paris Bourse with shares changing hands in thin trading at 0.09€ each, valuing the company at 5.68€ million. 

1855: the 12 new labours of Hercules

 Hercules will need his big stick to sort out the 1855 'arnaque'

Internet ‘wine’ company 1855 is planning to change its name on 19th September at a meeting of shareholders. The 1855 moniker will be discarded and the group will henceforth be called Héraclès.

Clearly the reputation 1855 and all the companies within the 1855 group have become so poisonous and lethal that a name change is necessary. As Emeric Sauty de Chalon says it is ‘une nécessité’ an ‘une opportunité de dissocier’ from ‘leurs tensions opérationnelles'.

My post this week on Les 5 du Vin lists 12 new and more difficult tasks for Hercules assuming that the 1855 shysters purloin his good name, so to launder their group's reputation.

Quelques mots sages de Emeric Sauty de Chalon (1855)

The inspirational Charles Ponzi 

Internet 'wine' company 1855 is planning to change its name on 19th September. The 1855 name will be discarded and the group will henceforth be called Héraclès.   

Clearly the reputation 1855 and all the companies within the 1855 group has become so poisonous and lethal that a name change is necessary. As Emeric Sauty de Chalon says it is 'une nécessité' an 'une opportunité de dissocier' from 'leurs tensions opérationnelles':

'3 Septembre 2013 - Groupe 1855 rebaptisé "Héraclès" - COMMUNIQUE DE PRESSE

'Groupe 1855 annonce aujourd'hui sa volonté de se rebaptiser en "Héraclès". "Ce changement de nom est à la fois une nécessité et une opportunité" déclare Emeric Sauty de Chalon, Président.

"Une nécessité, car le groupe possède aujourd'hui quatre marques distinctes - 1855, ChateauOnline, Cave Privée et les Caves de la Transat -, chacune avec ses racines, ses perspectives et son autonomie de fonctionnement, et il n'y avait pas de justification à ce que l'une des marques soit plus mise en avant que les autres au niveau de la dénomination du groupe".

"Ce changement est également une opportunité de dissocier la vie des marques - leurs produits, leurs clients, leurs tensions opérationnelles ponctuelles et leurs initiatives de développement - de la communication stratégique, financière et juridique d'un groupe coté en Bourse".

"Nous avons choisi comme nom "Héraclès", car ce héros grec a vécu un grand nombre d'aventures, de difficultés et d'exploits, et que ses voyages aux allures d'épopée raisonnent parfaitement avec celle que nous vivons dans l'univers du vin depuis la création de notre groupe en septembre 1995".

'Pour acter ce changement de nom, le conseil d'administration a convoqué une assemblée générale qui se tiendra le 19 septembre 2013, à Paris.' 

Unfortunately it is not known what the heroic Héraclès thinks of being associated with this bunch of shysters! 

1855 to become Héraclès: you couldn't make it up!

1855 = Héraclès

Amazing! It has finally got through to the geniuses who run the fraudulent 1855.com that their repeated failure over many years to supply the wines that their customers have ordered has made the company's name lethally toxic. So time to change the name – wipe the slate clean and hope that that there are still enough 'pigeons' to be taken in by this scam!

Shareholders in 1855.con will be asked on 19th September to vote through a name change – laundering 1855 to Héraclès (Hercules).  

'1855 va changer de nom. La société a convoqué ses actionnaires en assemblée générale mixte le 19 septembre prochain, pour notamment entériner le changement de dénomination sociale en "Héraclès".'

Lire la suite. 

How very appropriate to name a company, which sells 'mythical' wines, after a mythical character!!  

One can imagine Fabien Hyon, managing director of the 1855 group, and Emeric Sauty de Chalon, founder and president of the 1855 group   discussing the name change:

Fabien Hyon: Bonjour Emetic (Emetic is apparently the rather tasteless nickname used by Emeric's friends).

Emeric: Oui, bonjour Fabien!

Hyon: Emetic I think we have an increasing problem with 1855 name.

Emeric: Why's that?

Hyon: Doing a search on 1855.com brings up a lot of negatives. People are beginning to think we are fraudsters. It can't be long before the supply of pigeons (marks) starts to dry up. We need to react before its too late.

Emeric: Relax Fabien! Look we have got away with this scam for nearly 20 years – why change a winning formula? 

Hyon: No I'm serious Emetic – a name change would freshen everything up. All the dirty washing would go and ABUS1855.com would no longer have any meaning.

Emeric: You may have a point Fabien. Any ideas? 

Hyon: Well ...

Emeric: What about Hermes – the swift messenger to go with our new super-efficient logistics paltform?

Hyon: Emetic, I like the classical illusion but Hermes was the god of thieves! Isn't  that a bit too close to the truth?

Emeric: Perhaps...

Hyon: What about Héraclès?

Emeric: You know Fabien that's a great idea!

••

Assuming that the name change goes through on 19th September. The Fifth Labour of Hercules – Cleansing the Augean Stables – should become the First. Even better if the French authorities took on Herculean properties by closing down the 1855 stable!    

Con artists @1855 offer Château d'Yquem 2012! Priceless!

1855 offering 2012 Château d'Yquem

Château d'Yquem exists but not in 2012

SudOuest, Vincent Pousson and Nicolas de Rouyn (Bon Vivant blog) have revealed that the 1855 internet wine company that specialises in taking clients' money but then frequently fails to deliver wines ordered is now offering 2012 Château d'Yquem for an eventual delivery in June 2015. I should make that 'was' offering as the clowns that run this 'company' have now removed the page from the internet site.       

It is well known, except clearly at the headquarters of 1855 in the Rue des Moulins in central Paris, that Château d'Yquem decided in December 2012 that, because of the adverse weather conditions, they would not be making any d'Yquem in 2012. This was reported by decanter.com and many other sources.  

This embarrassing episode has forced Emetic Sauty de Chalon into offering an absurd explanation that they were merely making it possible to alert their clients in case the non-existent d'Yquem became available. I suspect that Sauty de Chalon is rather bemused by all this fuss as 1855 has been offering for sale for at least 10 years wines that do not exist as far as their customers are concerned. The advert for 2012 d'Yquem merely takes 1855's business model to a new level.    

In the news release Emetic Sauty de Chalon complains that SudOuest by running this story has damaged 1855's reputation. Sauty de Chalon must be aware that it is he and the rest of the management of 1855 and the other companies in the group who have very successfully damaged the group's reputation by trousering their clients money and then failing to deliver.  

See also a recent warning in La Revue du Vin de France about buying en primeur from ChateauOnline part of the Groupe 1855. It is clear that a growing number of Bordeaux châteaux are at last warning the public not to buy from sites owned by 1855.         

1855: interesting interview with Hélène Poulou

Château Latour

 

Very interesting interview in Terre de Vins with lawyer Hélène Poulou, who is based in Bordeaux and who has had very considerable success on behalf of clients who have not received wine ordered from 1855. In the interview she casts doubt on whether 1855 really does have financial problems.  

1855.com : clients en colère et gros bénéfices

TerreDeVins |  23 Mars 2013

L’avocate Hélène Poulou défend près de 200 clients du site de vente de vins 1855.com se plaignant de commandes non livrées. Elle a déjà obtenu de nombreux succès. Interview.