BEFORE YOU GO...
Check how Shufti Pro can verify your customers within secondsRequest Demo
A Georgian billionaire, Bidzina Ivanishvili, has sued the Swiss bank, Credit Suisse over a Fraud scheme that caused the loss of over $607 million
Bidzina Ivanishvili has sued the Swiss bank over the case of fraud that was run by one of the ex-bankers at Credit Suisse. The scheme caused the billionaire to lose 607 million US dollars in the case. According to the new estimate of the losses, that’s nearly 10% higher than the previous figure that came out for Credit Suisse in the March ruling.
The news comes from the statements published by several media agencies on June 21. Credit Suisse already added in legal provisions, some of which are related to the Bermuda case. The new amount that was cited during the hearing on Tuesday was overseen by Bermuda Supreme Court chief justice Narinder Hargun. He directed the forensic accountants on both sides of the case to deliver a more accurate assessment of Bidzina Ivanishvili’s losses. The chief justice put the losses at $553 million 3 months ago.
At that time, Credit Sussie was criticised by the judge, he said that the Bank’s life insurance department had failed to monitor the convicted criminal Patrice Lescaudron. He mentioned that the unit turned a “blind eye” to all the wrongdoings of the fraudster. Lescaudron was convicted in 2018, and according to the bank authority, he was the only one responsible for all the illicit activities.
Jonathan Crow, Credit Suisse Lawyer for Bermuda, stated in the hearing that he acknowledged the figure of $607 million and did not contradict the ruling of Narinder Hargun. Instead, the lawyer sought compensation.
Bermuda passed legislation in 2000 for creating entities known as SAC (Segregated Account Companies). These firms allow for the legal split of assets and liabilities for the separation of accounts.
According to the statement of Crow: “We fought the action and we lost” and are not seeking to set aside the liability, but the compensation, “is to be met and met only from the assets in the segregated accounts” created for the client, Bidzina Ivanishvili. Credit Suisse Life (Bermuda) has already appealed the verdict.
Suggested Read: FCA Declares Fine On Credit Suisse For Due Diligence Failings