Former geologist on trial for failure to declare a New Zealand trust

Claude Caillat, a former geologist of repute at Areva (Orano), is on trial in Paris for failing to declare a New Zealand trust, in a hearing highlighting the financial practices of the French nuclear giant at the time. He had discovered uranium showings in Canada in 2005, exploring northern Quebec with another geologist and long-time friend. Two years later, Areva bought 10% of the Canadian exploration company Uranor for CAD 47 million, for which the Canadian tax authorities had granted tax credits for the creation. Immediately after the buyout, a Canadian tax lawyer based in the Bahamas created a discretionary trust, backed by a Luxembourg account, whose sole beneficiary was Mr. Caillat. The president described this financial arrangement as “very opaque” and “complex”, even “by design”.

Defence of the accused

Aged 71, Claude Caillat has defended himself from having wanted to evade taxes, claiming that he has “never personally enriched himself” and that he has “in no way” benefited from the trust. He described himself as a “field geologist” and a stranger to the financial world. He stated that he never considered the trust money to be his own. He also emphasized that Areva’s strategy was to sell nuclear reactors, and that what was important to management was to make its customers believe that it had uranium resources.

Difficult investigation

The investigation to try to trace the financial flows to and from this trust and to identify the beneficiaries has been hampered by the absence or refusal of cooperation from Hong Kong, New Zealand, the United Kingdom and Switzerland. Mr. Laurent Le Méhauté, Mr. Caillat’s lawyer, said that his client “has been manipulated” and that the real fraudsters will not be worried because they are abroad. The National Financial Prosecutor’s Office has requested a one-year suspended prison sentence and a 200,000 euro fine. For the prosecution, Mr. Caillat had “partial control” over 2 million euros invested in a disability insurance in Great Britain and had engaged in “concealment”. Judgment is scheduled for March 21.