Apollonia, the real estate scam that deserves 10 years in prison, according to the prosecutor

In a structured and relentless indictment lasting approximately four hours, Mathieu Vernaudon began by addressing the 750 former clients of this wealth management firm. Seven hundred and fifty victims, doctors, dentists, and physiotherapists, who "have nothing to be ashamed of having succumbed to an extremely sophisticated process."

Many hoped to build wealth and prepare for their retirement with these purchases, which were supposed to be self-financing through the tax-advantaged professional furnished rental (LMP) status. But hopes of profitability have turned into excessive debt, banking bans, and the inability to pass anything on to their children.

"Lives shattered, destroyed, projects swept away," the prosecutor recalled in an unusually crowded trial room at the Marseille judicial courthouse.

"Apollonia sells medicine to developers and banks. Apollonia is not interested in the investor's interests. However, it is in the developer's interest that the sale price be as high as possible, that the interest rate be as high as possible, and that Apollonia's commission be as high as possible," he explained.

For him, doctors were not Apollonia's customers but its products: they were "hunted", "tied up", via an extremely well-oiled "commercial bible" developed by Jean Badache.

With his wife, Viviane, they founded this company based in Aix-en-Provence. She managed the administration and casework, which duped the banks, also civil parties, into submission. The victims' actual debts, who "understand nothing about law or taxation," were disguised so that they could acquire as many properties as possible, inevitably leading them into excessive debt.

Only one motive: money

According to the prosecutor, the Badache couple therefore bear "the highest responsibility": "they are the organizers, the designers and the beneficiaries of the organized fraud."

They benefited because they lived the high life, traveling by private jet, owning a chalet in Switzerland, a palace in Marrakech, a villa in Cassis. And during the trial, they blamed others, their former salespeople, their former secretaries, and even the civil parties, for whom they had nothing but "contempt," according to the magistrate.

He therefore asked the court to sentence them to the maximum term of 10 years in prison with an immediate arrest warrant, given the "very high" risk of absconding.

He also requested a fine of five million euros against the couple, or 2,5 million each, confiscations exceeding 19 million euros and bans from working in the real estate and financial sectors or from managing a company.

Another fine of five million has been demanded against the Apollonia company, which, according to the prosecutor, will have to be dissolved.

Of the 12 other defendants, the heaviest sentence—six years in prison with a custodial warrant—was requested for one of the four salespeople involved, François Melis, known as "Little Badache" according to the prosecutor. For the company's lawyer, René Spadola, "the key man," he requested a five-year sentence with a custodial warrant and a ban on practicing law.

"The motive is the same as for all the other defendants: money!" said the prosecutor.

The three notaries prosecuted in this case, which dates back to the 2000s, were sentenced to up to five years in prison, three of which were suspended with probation, and a fine of one million euros, along with a permanent ban on practicing.

Shorter sentences were finally requested against the secretaries and Badache's son, who was once Apollonia's "straw president".

"The whole problem with Apollonia is its influence over investors," argued Cécile Pion, who represents 195 civil parties with Jervolino, on Monday morning.

From Tuesday, the defense will have the floor, before the end on Friday of this two-month-long trial.