This search, which took place on Wednesday at the headquarters of the private group of Ehpad, follows the investigation opened in April on suspicion of institutional mistreatment or financial offences.
The headquarters of Orpea and the regional management of the group were raided on Wednesday June 8 as part of an investigation into suspicions of institutional abuse and financial offenses in its establishments for dependent elderly people.
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At 9:00 a.m., a dozen gendarmes from the Versailles Research Section and the Central Office for the Fight against Damage to the Environment and Public Health (OCLAESP) entered the company’s headquarters in Puteaux ( Hauts-de-Seine), noted an AFP journalist.
Orpea management confirmed that a search was “In progressat head office and in its regional departments. About 200 gendarmes were mobilized on these fifteen operations, indicated the Nanterre prosecution, including investigators from the command of the gendarmerie in cyberspace. After the revelation of these searches, Orpea shares fell 3.13% on Wednesday on the Paris Stock Exchange.
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According to another source close to the investigation, these searches aim to “carry out checks” in the investigation opened in April by the Nanterre prosecutor’s office, after a report from the government following the publication of the book “The Gravediggersby Victor Castanet. In this book published in January, the independent journalist denounced in particular the mistreatment of residents and the misuse of public funds. These dysfunctions were partly confirmed in a report commissioned in the wake of the government, which demanded the restitution of public grants allegedly diverted from their purposes.
Of the “malfunctions» confirmed by audit firms
The Orpea group also made public on Wednesday the final conclusions of an external audit confirming “wrongful behavior» and «malfunctionsespecially in its use of public funds. “The publication of the conclusions of the external evaluation mission is part of the process of total transparency» from Orpea «in response to allegations made against the group“Said Chairman and CEO Philippe Charrier, quoted in a press release. “If it shows that some of these allegations are not proven, it also confirms malfunctions and wrongful behavior for which we once again offer our most sincere apologies to all our stakeholders.».
Read alsoInvestors put pressure on Orpea
The firms Grant Thornton and Alvarez & Marsal, mandated by Orpea in February, have notably “confirmed” a “practice of end-of-year discounts (RFA) with certain major suppliers of products financed by public grants not communicated to the authorities as planned“. Independent audits have also confirmed “a practice” aiming to “maximize the consumption of the allocation allocated by the authorities to nursing homes for medical devices», via «billing by a service provider whose reality could not be verified“, continues the press release. They noticed “the existence of surpluses in allocations received from the authorities, the accounting treatment of which may have contributed to the group’s result“. Orpea claims to have taken measures in “the objective of eradicating the practices identified above, when they still existed».
«Justice finally takes the measure of this public health scandal“, welcomed after the announcement of the searches the lawyer Fabien Arakelian, representing several families who filed a complaint in Nanterre and elsewhere in the country. “Hope this continues“, he added. “We were trying to point the finger at dysfunctions, institutional mistreatment and today I hope with all my heart that this search will, at least, put the truth on all that has been lies for years“Said the CGT Orpea union representative at the end of a meeting with management on Wednesday.
Another investigation opened in mid-May
Another investigation, in particular for abuse of corporate assets, separate from that which led to the searches, was opened in mid-May following a complaint against X filed by Orpea, AFP learned on Wednesday. This complaint is aimed atpast facts and transactions (…) likely to raise questions with regard to Orpea’s corporate interest and discovered following internal investigations“, according to the private group of Ehpad.
In addition to the investigation opened in April, Orpea has also been the subject of an investigation since February for “forgery and use of forgery and violation of labor legislation by misuse of fixed-term contracts“. The proceedings have since been joined.
The investigators are also digging into numerous complaints: a good part of the salvo of the 80 complaints filed in April by Me Sarah Saldmann on behalf of residents’ families, as well as other complaints, from other lawyers, and received even before the publication of the book “The Gravediggers». «Within the framework of these various investigations, (…) the investigations began with several hearings already carried out» et «give riseto the searches on Wednesday, said the Nanterre prosecutor’s office.
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In addition, the former general manager of the group for more than ten years, Yves Le Masne, sacked at the end of January, was heard in free hearing Tuesday as part of an investigation opened by the national financial prosecutor’s office (PNF) for “insider tradingconcerning his resale of shares, shortly before the publication of Victor Castanet’s book. “The investigation continues“, soberly indicated the PNF on Wednesday, confirming the end of the hearing of the former leader on Tuesday.
Faced with numerous criticisms and inquiries, Orpea launched in MayStates Generalto collect the grievances of its residents: about fifty establishments organize meetings within them, and a digital platform has been set up to receive suggestions. Orpea has promised a report on these debates in the fall.
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The scandal also affects a direct competitor of Orpea, Korian. Thirty complaints against Korian nursing homes, in particular for “manslaughter“, were filed before a dozen prosecutors in several regions, lawyer Sarah Saldmann said on Tuesday. These complaints against X come from 18 families of residents, for acts of “endangering the life of others“, of “no assistance to the person in danger” and D'”manslaughter».
The Korian group indicated in a press release that it “is unaware of the content of these complaints and therefore cannot comment» and recalls that «all serious situations brought to (his) knowledge are dealt with and systematically declared to the authorities“. On Wednesday, the Korian title lost 9.51% on the Paris Stock Exchange.