Albert Oustric affair

Raoul Péret

Albert is Oustric errand boy, representative wines, amateur singer in a few breweries, before title in 1919 banker. He opened an office Rue Auber in Paris, where he officiated as manager of a bank partnership capital of one million francs, of which only a quarter is paid.

Oustric is an intelligent man. It greatly helps to successful careers in the UL , the Laundries Thaon and even Peugeot .

Until 1925, under cover of the bank, tied Oustric many relationships with politicians. They enable him to obtain approval from the Ministry of Finance and the Ministry of Foreign Affairs to list on the Paris Stock Exchange the shares of Italian society artificial silk SNIA Viscose . To personal success earned him a comfortable reward Italian banker interested, but especially a flattering reputation in the business community.

Therefore very busy, he agrees to take an interest in advancing their troubled companies are subject to significant deposit shares of the said companies, Multiple Voting Shares of preference. This allows him to take control of these companies and put the boards men in his devotion.

Then he deposited securities as collateral to the Bank of France which he makes advances as discount. With this cash, it takes control of new business: so the Adam Bank , shoes Erlich , Dresser , Binet , Fayard , Amazing ... It is also conducting capital increases by issuing shares placed with ease . It creates through this company more or less ghostly, is financing each other and intended to support in case of difficulties: the French holding Holfra , Extension of the French industry , etc..

In October 1917 the stock market causes an early warning on the securities of companies patronées Oustric by the Bank and the 30th of the same month trading is suspended. A few days later, Oustric Bank went bankrupt and waterfall, Adam Bank and all satellite companies. A complaint is filed and Oustric imprisoned. He was sentenced to 18 months in prison and a fine of FRF 3000 for irregularities in transactions on securities houses shoes.

Oustric was in reality more or less guilty than many other speculators who had acted as he did, with the same methods during the period of financial euphoria of the post-war period. But Oustric could make many dupes and jeopardize many people, even managing to corrupt the Justice Minister of the Cabinet Tardieu, Raoul Peret which hindered the course of justice. The revelation of the relationship between Raoul Peret Oustric and even brought down the government Tardieu

The Oustric-Péret Case

To facilitate its development, Oustric weaves since the early 1920s of links in the world of politics. In November 1929, the bank Oustric & Cie, very affected by the crash of Octoberis declared bankrupt, which turns out to be fraudulent.

A commission of inquiry is being conducted then in November 1929 . Raoul Peret , meanwhile become Attorney General , is implicated in this case, as we discover it was lawyer -board Oustric after 1926 he had supported the introduction of the SNIA Viscose at the Paris stock exchange, while Finance. On the other hand, even though it was Justice, he continued to receive emoluments (over 100,000 francs per year), while slowing the work of investigators.

In the Assembly, a Member launch: "When we talked about the immense stables to clean, it seemed to me that many horses applauded." While songwriters are signed "on behalf of Peret, taxation and St. Oustric"  .

The bank Oustric led in its fall the Adam Bank , which was put into liquidation on 4 November 1930 . Albert Oustric was arrested on November 21 1930 . On November 22, theJournal of Finance condemned man in these words: "He dried the current accounts of the Bank Adam" and the scandal brought down the government 's André Tardieu on 4 December.

Impeached by the House of Representatives March 25, 1931, Peret is then arrested and imprisoned on March 31. He was acquitted on July 23, and Gaston Vidal , René Besnardand former Congressman Albert Fabre, on decision of the High Court .

Oustric is sentenced on 5 January 1932 to 18 months in prison and 3,000 franc fine for irregular transactions in the securities of the General Society of French shoes  .Meanwhile, its Italian partner, Riccardo Gualino, he is also arrested for aggravated fraud and ordered by Mussolini , imprisoned.

The bank Oustric & Co. and its subsidiaries a cumulative left of liability 1.5 billion francs which took several decades to be discharged.

Protectionist context of exchange control and tax high scholarship, which discourage foreign operators Oustric had used the permissive conditions offered by a French purse isolated, cut off from international financial flows and other stock exchanges. She was offered and manipulation classes by local speculation that given the means, and takes hostage, given its small size. This speculation would be impossible today, or interventions in the opposite direction from the outside would not fail to address the means implemented by a Oustric.