Bernard Laporte has been handed a two-year suspended prison sentence after the World Rugby vice-chairman was found guilty of corruption.
A Paris court confirmed the sentence and also fined the president of the French Rugby Federation (FFR) €75,000 (£64,000) on Tuesday. Laporte was found to have an 'illegal taking of interests', with four instances of 'passive corruption' that were 'guided by a bias towards' Montpellier owner and FFR investor, Mohed Altrad.
The 58-year-old was found guilty in all but one of the five bribery charges laid against him. The punishment comes as a huge shock to French rugby, particularly with the country set to host the 2023 Rugby World Cup in less than a year.
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Billionaire Altrad was also given an 18-month suspended jail term and fined €50,000 (£43,000) for 'active corruption, insider influencing and misuse of company assets'.
Altrad's eponymous construction and engineering company became the first sponsor to appear on the French national rugby team jersey after agreeing a €1.8million deal in March 2017.
That deal was struck just months after former France and Toulon head coach Laporte was elected FFR president in late 2016. He was also accused of interfering with a federal disciplinary commission after a fine against Altrad was reduced from €70,000 to just €20,000.
It was also in early 2017 that Laporte agreed an image licensing contract worth €180,000 for work that was never undertaken. The court heard in September how Laporte also signed a deal with insurance company AIA between 2017 and 2018, which accounts for the conflict of interest charge.
The passive corruption charges against Laporte relate to four separate business dealings that also involved Altrad and his company. This included Laporte voting in favour of Altrad's proposed takeover of Premiership outfit Gloucester, as well as a partnership contract for next year's World Cup.
"World Rugby notes the decision of the French court to sentence Federation Francaise de Rugby (FFR) President and World Rugby Vice Chairman Bernard Laporte on corruption charges which relate to domestic matters," read a statement.
"The World Rugby Executive Committee will convene tonight to determine the next steps in accordance with the international federation’s Integrity Code. A further update will be made following the meeting."
As part of his punishment, Laporte has been banned from having any involvement or working in French rugby for two years. However, he will retain the FFR presidency.
Both men deny any wrongdoing and Laporte's lawyer said he would appeal the ruling, while Altrad's said he would study the decision before deciding whether to appeal.