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Valais wine kingpin held as fraud scandal grows

A bizarre scandal is swirling around one of Switzerland's leading wine producers after he was arrested last week along with a computer hacker, a detective and a spy.

Valais wine kingpin held as fraud scandal grows
Photo: YouTube/Sion Tourisme

Dominique Giroud, 43, was taken into custody on Wednesday on suspicion of ordering the hacking of computers belonging to journalists who were investigating him over allegations of fraud.
   
He has been remanded in custody until July 14th.

If found guilty, he could be sentenced to up to five years behind bars.
   
A professional hacker, private detective and Swiss intelligence agent have also been arrested in connection with the case, the Geneva prosecutor's office said on Friday.
   
Giroud, whose company Giroud Vins is based in the southwestern canton of Valais — Switzerland's largest wine-growing region — has been dogged by scandals for years.
   
His reputation has been so tarnished that he has even tried to change the business's name to Chateau Constellation, although it was rejected by regional authorities.
   
Giroud opened a small-scale business in 1995 with reportedly just 1.5 hectares of vineyards to his name and saw that swell to an estate of around 50 hectares.
   
His castle-like winery on the outskirts of Sion, Valais's capital and largest town, opened its doors in 2008 and is reportedly valued at around 15 million francs ($17 million).
   
Giroud claims to sell up to nine million litres of wine each year, and is estimated to rake in around 50 million francs in sales, according to Swiss weekly Le Matin Dimanche.
   
With his ballooning fortune he sponsored numerous sports clubs across Switzerland, opened a restaurant in Singapore and started a chain of Wine Universe stores, the paper reported on Sunday.

 'Giroud is Scarface'

The wine producer is also said to be renowned for his ruthless tactics.
   
"Giroud is Scarface," one unnamed Valais wine industry source told the paper, referring to Al Pacino's hubristic mob boss character in the 1983 movie.
   
"He thought he was God. He thought he was above everyone," another said, while a third recalled how Giroud liked to brag that he alone could bring down both Switzerland's banking and wine industries if he wanted to.
   
Swiss authorities opened a tax fraud probe against him in 2011, and two years later demanded he pay 9.54 million francs in back taxes.
   
In February this year, national broadcaster RTS reported that he had illegally blended some 350,000 litres of wine between 2006 and 2009, passing it off as pure.
   
He also tried — and failed — to stop two RTS documentaries about his business from being aired last month.
   
The arrests last week centre on alleged attempts to hack the accounts of journalists at RTS and the Le Temps daily in an apparent bid to find the sources for their reporting on Giroud.
   
The private detective and the hacker say they carried out the spying on orders from their long-time business associate, the intelligence agent — also a childhood friend of Giroud — Le Matin Dimanche reported.
   
Both the private detective and the hacker reportedly attempted the operation thinking they were acting for the government.
   
The wine producer's lawyers insist he never gave his blessing to the hacking, while the agent has claimed through his lawyer that he had warned the group it was illegal.

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WINE

What is Switzerland’s ‘one franc vineyards’ scheme – and is it legit?

When news broke of vineyards being offered in the southwest of Switzerland for one franc, many asked if it was too good to be true. Here's what you need to know about the scheme (and how much a vineyard will actually cost you).

What is Switzerland's 'one franc vineyards' scheme - and is it legit?

Earlier in Spring, news broke of a new scheme where Swiss vineyards were available for just one franc. 

As with similar stories offering one franc plots of land or houses, the news spread far and wide – which of course was the point – while some eventually became disappointed. 

READ MORE: Gambarogno: The latest Swiss village to sell houses for one franc

While it’s likely to cost you a good deal more than one franc, if owning a Swiss vineyard (or at least part of it) is on your bucket list, you now have an opportunity to do so. 

Why are Swiss vineyards going cheap?

With nearly 5,000 hectares of vineyards and 60 different grape varieties, Valais is Switzerland’s largest wine-growing region.

Unfortunately, 20 percent of the canton’s vines are abandoned and municipalities must uproot them because they can’t find people willing to cultivate them.

A case in point is the community of Savièse, nestled in a picturesque Alpine valley. About 120 plots — four to five hectares — of  its vineyards were abandoned by their owners and therefore not harvested last year, as the commune can’t find people to do the work.

This is a serious case of neglect because “when a vine is not pruned, there is a period of one year to uproot it. Otherwise, there is a risk of spreading disease”, according to Savièse’s mayor, Sylvain Dumoulin.

“There are some vines where we need to do this now, and I fear the number will increase in the future”, he added.

How much does a plot cost?

In order to protect its winemaking traditions in general and abandoned plots in particular, the municipality has launched a new vines-saving project which includes a “stock exchange” of sorts for the sale and purchase of abandoned parcels.

READ MORE: EXPLAINED: How to drink wine like a Swiss

Dumoulin didn’t reveal the cost of a plot of vineyard, as it depends on its location, condition and other factors.

Unfortunately, while you may have seen articles reporting that parcels are being sold for “a symbolic one franc”, this is more than likely a marketing ploy to attract attention than a realistic price.

Savièse’s vineyards. Screenshot, Savièse.ch

“The main long-term objective is to encourage the grouping of plots and thus the rationalisation of the exploitation of these parcels”, Dumoulin told The Local.

He added that currently the project is “exclusively accessible for people who already own vineyards. But from July it will be open to anyone with an interest in purchasing vineyard areas”.

From then on, “anyone can download the application to find plots of vines for sale and to make their owner a price proposal”. 

The app, called “Vignoble Savièse” can be purchased in Apple or Google stores.

One example of such a gimmick was the Ticino town of Gambarogno, located on the shores of Lake Maggiore, which offered houses for one franc.

‘Impossible’: Why Switzerland’s one franc homes are too good to be true

As The Local reported, “the news – along with pictures of the Ticino countryside and the lake itself – spread across the globe, with people inside and outside of Switzerland letting themselves dream”. 

However, the “rustic houses with the view of the lake” turned out to be nothing more than ruins, with no roofs, windows, electricity or running water, situated in remote locations — about an hour’s walk from the nearest village. 

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