A Singapore court has ordered a unit of Credit Suisse Group AG to pay billionaire Bidzina Ivanishvili $926 million.
This court decision has become another problem for a financial institution whose situation has not been characterized by positive indicators lately. The amount of the payment, which has become a financial obligation for the Swiss lender, will be further revised in order to prevent the possibility of double recovery. The media reports that as a result of this process, the amount will decrease.
The Bermuda Court in 2022 adopted a ruling according to which the billionaire should receive compensation for damages in this case in the amount of more than $600 million.
Singapore-based Credit Suisse Trust Ltd. committed violations of obligations to the plaintiffs. The court’s ruling, which was published on Friday, May 26, contains information that the financial institution did not ensure the safety of the trust’s assets.
The decision of the Singapore court is a continuation of a series of defeats of Credit Suisse after losing in a Bermuda court, accusations of involvement in money laundering practices in Switzerland, and some other scandals. Against the background of these problems, the reputation of the lender has significantly suffered. The bank’s management had to agree to the takeover of UBS Group AG with the mediation of the Swiss government. This deal is not the most favorable future option for Credit Suisse, but there is no other choice in the current situation.
A representative of the Swiss lender called the court’s ruling in Singapore incorrect and described it as a source of very serious legal problems. He also announced the bank’s intention to appeal.
Ivanishvili’s press secretary informed about the legality of the court ruling and expressed hope that the financial institution will comply with this decision, taking responsibility for its failures.
The court decision highlighted the trust’s inability to prevent private banker Patrice Lescodron from gaining any further access to the assets. Lescodron heard the court verdict in 2018. He was found guilty of implementing a fraudulent scheme in which money was stolen from Ivanishvili’s accounts.
The judge of Bermuda, who ruled in favor of Ivanishvili, said that the CS life insurance division ignored the illegal activities of Leskodron. A separate criminal investigation by the Geneva Prosecutor’s Office into the extent of the bank’s responsibility for the actions of the fraudster continues
The losses incurred by the plaintiffs represent the difference between the potentially possible result of the withdrawal and management of the portfolio by competent specialists in the past and what actually happened. Singapore judge Patricia Bergin stated this in her verdict.
As we have reported earlier, UBS Sees $35 Billion Gain on Credit Suisse.