FRANCE Law and Practice Contributed by: Samuel Sauphanor, Alexandra Szekely, Timothée de Saint Viance and Benoît Barré, Le 16 Law
larly relevant in fraud matters, where conceal - ment is often an issue. For criminal proceedings, the applicable limita - tion period depends on the legal classification of the offence: • 20 years for serious crimes ( crimes ) (Article 7 of the Criminal Procedure Code); • six years for misdemeanours ( délits ), which includes most fraud-related offences (Article 8); and • one year for minor infractions ( contraventions ) (Article 9). Limitation periods in both civil and criminal contexts may be suspended or interrupted in various circumstances, such as the initiation of proceedings, acknowledgement of the claim by the defendant or the occurrence of events that temporarily prevent action, extending the time - frame available to claimants (see Articles 9-1 to 9-3 of the French Criminal Procedure Code and Articles 2240 et seq of the French Civil Code). In practice, most fraud claims proceed under the six-year limitation applicable to misdemeanours, but claimants must carefully assess the interplay between discovery rules, procedural delays and the type of forum selected. 1.5 Proprietary Claims Against Property Under French law, although the concept of “pro- prietary claim” as understood in common law does not exist in the same form, some mecha - nisms do allow for the protection of victims of fraud. While French law does not recognise a propri - etary claim in the common law sense, several mechanisms exist to secure the restitution of
assets misappropriated or transferred through fraud, both in criminal and insolvency contexts. Criminal Seizure and Confiscation In criminal proceedings, assets that constitute the direct or indirect proceeds of fraud, or were used in its commission, may be seized and later confiscated (Article 131-21 and Articles 706-141 et seq of the French Criminal Code). These measures can be ordered prior to convic - tion, allowing authorities to preserve the assets during investigation and trial. Management of seized assets is handled by the national agency (the “AGRASC” ), which administers everything from bank accounts to real estate property and is entitled to sell the seized property for the ben - efit of the state. Where proceeds of fraud have been reinvested or co-mingled with legitimate assets, confisca - tion may only extend to the portion traceable to the unlawful origin. In this context, restitution to victims remains possible throughout the crimi - nal proceedings. Victims can assert their rights before the trial court or through a post-seizure claim under Article 481 of the French Criminal Procedure Code. Impact of Investment Gains French law adheres to the principle of full com - pensation without enrichment. Victims are enti - tled to restitution of the original value of the misappropriated property, but not to any gains generated through its investment. Accordingly, profits earned on fraudulently acquired assets, however substantial, do not increase the amount of compensation. Insolvency Considerations In insolvency, a civil party’s claim for dam - ages arising from criminal wrongdoing ranks as an unsecured debt unless specific guaran -
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