Marseille, October 24, 2023 – The Marseille criminal court is currently the scene of a resounding trial, highlighting questionable practices within the Algerian oil company Sonatrach. The main defendant, French doctor Christophe Cassan, is in the dock for tax fraud and money laundering, revealing a complex pattern of corruption and tax evasion that continued for years.
The Facts: A juicy contract
The affair began in 2007 when Christophe Cassan, an emergency doctor based in Montpellier, was awarded a 37 million euro contract over seven years to provide medical care in France to Sonatrach employees and their families. This contract was awarded to his company, the “Mediterranean Diagnostic Center” (CMD), which he had created for this purpose.
What makes this case particularly troubling is the manner in which this contract was obtained. At the time, Christophe Cassan was in a relationship with Yasmina Harchaoui, also involved in this affair and accused of money laundering. What raised questions was Cassan’s proximity to his father-in-law, a surgeon well connected in the spheres of Algerian power. This relationship facilitated CMD’s access to the contract.
Suspicious Payments
Sonatrach used to work in collaboration with Europ Assistance for the medical needs of its employees. However, in 2007, the management of Sonatrach’s social works decided to transfer logistics and care of its employees to CMD. The move paved the way for the seven-year, €37 million contract.
What raised doubts was that Sonatrach’s payments were intended for an American company, Medical Prevent Inc (MPI), created in the state of Delaware by members of the Harchaoui family. The funds were then transferred to an account in Luxembourg. This practice made it possible to conceal financial flows, thus raising suspicions of tax fraud.
The Defense of Christophe Cassan
During the trial, Christophe Cassan affirmed that his objective was to create a healthcare structure in France, not to set up an international tax fraud scheme. He produced various contracts and agreements to demonstrate that he was acting as a subcontractor of MPI, thus refuting any intention to evade taxes.
However, the French tax administration reinstated the payments made to MPI into CMD’s accounts. In 2011, the amount of fraud was estimated at €4.3 million for that year alone, with total liabilities of €21 million over several years.
Severe Requisitions and an Uncertain Future
Prosecutor Jean Moineville requested severe sentences against the accused. Against Christophe Cassan, he requested four years in prison, including two years with probationary suspension, with strict obligations for the suspended sentence. For Yasmina Harchaoui, prosecuted for money laundering in this case, he demanded two years in prison, including one year to be executed with an electronic bracelet, and a fine of 200,000 euros. A ban on running a business for fifteen years was also requested against the two defendants.
The final decision will be rendered on January 24, 2024. This case highlights Sonatrach’s controversial practices and underlines the importance of fighting tax fraud and money laundering, particularly in the context of international contracts. The verdict could also have wider implications for economic relations between France and Algeria, as well as Sonatrach’s reputation as a major national company.
The trial of Christophe Cassan and Yasmina Harchaoui reveals a dark chapter for the company Sonatrach and raises questions about how large national companies manage their business relationships and tax responsibilities abroad. The verdict expected next January will determine the consequences of this case, both for the accused and for the image of Sonatrach.
