On December 17, 2024, Sadri Fegaier, former CEO of SFAM-Indexia, was sentenced to two years in prison, with 16 months to be served in custody, and fined €300,000 for deceptive business practices by the Paris Correctional Court.

The court also imposed fines on six affiliated companies, ranging from €150,000 to €1.5 million, highlighting the extensive impact of Fegaier's fraudulent practices.

Thousands of victims have suffered financial losses amounting to millions of euros due to fraudulent insurance practices associated with Indexia, which sold policies without proper consent.

Victims reported experiencing unauthorized withdrawals from their accounts, often totaling thousands of euros for insurance they did not authorize, leading to significant financial distress.

Fegaier, aged 45, showed no remorse during the trial and attributed unresolved issues to the group's growth, despite evidence of deceptive practices that spanned nearly a decade.

Evidence presented during the trial revealed that Fegaier and his companies created complex systems to discourage customers from canceling contracts or seeking refunds, affecting around 2,000 plaintiffs.

The court found that Fegaier established an abusive bank withdrawal system over nearly a decade, which involved misleading insurance contracts for multimedia devices.

The court deemed the case 'exceptional' due to the thousands of victims affected, and Fegaier is also required to reimburse victims and has had his real estate assets seized.

Prior to this ruling, the French fraud watchdog had penalized the group in 2018 for its practices, which ultimately led to the criminal trial.

The prosecution had initially requested 18 months of imprisonment, but the court's ruling exceeded these recommendations, reflecting the outrage of the victims.

Union representatives noted the negative consequences for former employees in finding new jobs due to the company's tarnished reputation, and further legal actions from victims are anticipated.

The court has only ruled on Fegaier's culpability so far and will address the civil parties' cases in a hearing set for April 10, 2025.