Swiss winemaker sentenced to prison for large-scale wine fraud in Valais Region

On September 2, 2024, a court in Sion, Switzerland, sentenced winemaker Cédric Flaction to three and a half years in prison for wine fraud and forgery. The court also ordered him to pay 1.94 million Swiss francs ($2.34 million) in compensation. Flaction, once known for his collection of luxury cars—including Aston Martins, Ferraris, Porsches, an Audi, and a BMW—became the first winemaker in Valais, Switzerland’s largest wine region, to be convicted of such crimes.

Between 2009 and 2016, Flaction allegedly purchased 750,000 liters of Spanish bulk wine and 105,000 liters of Pinot Noir from Schaffhausen, a less prestigious Swiss region. He then sold these wines as Valais appellation wine at prices between CHF9 and CHF13 per liter, despite acquiring the Spanish wine for CHF1.5 per liter and the Schaffhausen Pinot Noir for CHF3 per liter. Written instructions on blending percentages were reportedly found at his winery. To conceal his activities, Flaction created 52 fake invoices showing sales to Valais wine companies.

Swiss police seized 13 of Flaction’s cars and blocked 15 bank accounts before his conviction. Last week, ahead of his appeal scheduled for July 2024, a Sion court confirmed that his assets would remain frozen. During the trial, Flaction admitted to creating false invoices and exceeding legal production limits for Valais AOC wine but denied selling Spanish or Schaffhausen wine as Valais AOC. His lawyer argued that the Schaffhausen Pinot Noir was sold as Vin de Pays or Swiss table wine. However, presiding judge Sophie Bartholdi Métrailler stated that cheating had become routine for Flaction and that he only partially acknowledged his wrongdoing.

The court indictment cited by Swiss newspaper Le Nouvelliste reported that Flaction’s scheme generated nearly CHF1 million ($1.2 million) in profit from a total turnover of almost CHF12 million. Of the 52 questionable invoices, 43 were made out to companies owned or managed by Dominique Giroud, another prominent figure in Swiss wine fraud investigations.

Wine fraud involving Spanish bulk wine is not unique to Switzerland. Similar cases have emerged in France and Spain over the past decade. In Bordeaux, a fraud ring led by Michel Gilin and Jean-Sébastien Laflèche was convicted in January 2023 for selling 34,000 hectoliters of Spanish bulk wine as Vin de France and Bordeaux appellation wine—a case that took nearly ten years to resolve. In Spain, a Tarragona-based company called Reserva de la Tierra is under investigation for allegedly selling more than ten million bottles of fraudulent wine over three years. The case remains open nearly three years after bail was set at €65 million for six defendants.

Back in Valais, Flaction claimed during his hearing that he delivered Spanish bulk wine to Dominique Giroud. Giroud is a controversial figure with previous convictions for tax fraud and espionage. In April 2023, Switzerland’s Federal Court upheld a fine against Giroud for hiring a detective and hacker to spy on journalists but overturned a prison sentence related to the case. Giroud has also faced fines for tax evasion and has been linked to far-right political groups and controversial advertising campaigns.

Giroud’s ongoing criminal investigation involves allegations similar to those against Flaction: using non-appellation grapes to produce Valais appellation wine. The investigation began after the Valais wine trade body (IVV) filed a complaint in 2015 based on Giroud’s own admissions to federal tax authorities. In June 2024, Swiss lawyer Charles Navarro was appointed as special prosecutor for the Giroud case after previous prosecutor Beatrice Pilloud was removed due to conflicts of interest.

Authorities are also investigating Château Constellation (formerly Giroud Vins) over the sale of 30,000 liters of 2019 AOC Valais wine suspected of being blended with non-AOC wine.

Yvan Aymon, chairman of the IVV, explained that local winemakers are the primary victims of such frauds because they face unfair competition from those who import cheap bulk wine from Spain or other regions and sell it as premium appellation wine. He noted that producing wine in mountainous Valais is much more expensive than in Spain’s vast plains.

To combat future frauds, Swiss authorities have introduced stricter controls on production rights by grape variety and centralized oversight within each canton. Isotopic testing of wines has increased as an effective tool against fraud; however, Aymon emphasized the need for broader databases so courts can accept isotopic evidence in criminal trials.

Both Flaction and Giroud declined to comment on their cases when approached by reporters. The investigations continue as Swiss authorities work to restore trust in their country’s renowned wine industry amid growing concerns about fraudulent practices involving imported bulk wines.