Three sentenced over LVMH corruption scandal

Three people have been jailed over a 21 million yuan (US$2.89 million) corruption scandal involving French luxury giant LVMH's Chinese subsidiary, according to documents released by Shanghai Jing'an District People's Court.

The sentences, which were temporarily suspended, ranged from two years to 33 months, according to the documents.

The defendants, surnamed Su, Wu, and Hu, were found guilty of misappropriating funds from "company A," revealed to be LVMH's perfume and cosmetics sales subsidiary in China, according to Tianyancha, China's leading business data platform.

According to the documents, from 2015 to 2023, a senior director of the company's training department, Ying and his fellow manager, Cui, were in league with the three defendants and their companies to embezzle money from LVMH by fabricating expenses for meetings, and consulting and translation services.

In addition, Ying and Cui were settled in a separated case, according to report by Cailian Press.

This had been going on for nearly a decade before it was discovered, with the money involved totalling over 21 million yuan.

LVMH P&C, established in 2000 by LVMH Group, is primarily responsible for the sales of perfume and cosmetics brands under the group in China. These brands include Dior, Guerlain, Givenchy, Benefit, Make Up For Ever, Kenzo, Acqua di Parma, and Fresh.

LVMH Group has not yet issued a public statement regarding the case.