Fabrice Coffrini/AFP/Getty Images
The Singapore court ruling is one of the largest legal decisions against the bank.
Credit Suisse on Friday was ordered to pay $926 million to the former Georgian prime minister for losing part of his fortune in a Singapore court ruling in one of the largest legal rulings against the bank. .
Singapore’s International Commercial Court said a division of Credit Suisse had failed to act in good faith and to keep Vijina Iwanishvili’s assets safe, a recent lawsuit against the troubled bank being taken over by UBS. He said he was hit.
(UBS).
credit suisse
(CSGKF) It said it would appeal the decision.
Billionaire businessman Ivanishvili, who served as prime minister of Georgia from 2012 to 2013, had $1.1 billion in 2005 under the control of Credit Suisse Trust, the court found.
Iwanishvili’s attorneys, Cainder Bull and Wu Shu Yang of Drew & Napier Law Firm, said the failure of Credit Suisse Trust led to fraudulent mismanagement and large losses.
In a ruling released on Friday, the court said the bank had failed to protect Iwanishvili’s assets. Patrice Lescordon, an adviser to Credit Suisse Trust in Singapore, who was later convicted of fraud, should have been prevented from accessing them.
In 2018, Lescoudron was convicted by a Swiss court of forging the signatures of former clients, including Iwanishvili, for eight years. He admitted to falsifying deals and hiding losses in plans to make tens of millions of Swiss francs. He was released in 2019 and committed suicide in 2020.
Judge Patricia Bergin said in her ruling that “defendant’s conduct was not found to be reasonable.”
“Mr. Lescolon’s importance in retaining large client plaintiffs in the Credit Suisse organization has been prioritized over compliance with its core obligation to keep trust assets safe.”
Bergin said Credit Suisse was aware that Lescordon had violated regulations aimed at preventing fraud and waited up to two years for a response when questioned.
“The government’s tolerance of these flagrant violations was dishonest and unreasonable,” Bergin added.
The $926 million to be paid by Credit Suisse will be reduced from the $79 million already paid in December.
“The ruling announced today is erroneous and raises very serious legal issues,” Credit Suisse said in a statement. “Credit Suisse Trust Limited intends to pursue its appeal vigorously.”
The bank is also appealing another ruling on Iwanishvili’s wealth management.
A Bermuda court ruled in March 2022 that Iwanishvili and his family should pay approximately $600 million in damages to Credit Suisse’s local life insurance division.
The court said the final amount to be paid by Credit Suisse should be further reduced to prevent duplication with the Bermuda lawsuit and prevent so-called double recoveries. Credit Suisse is now appealing Bermuda’s decision.
The duplication is estimated at about $300 million, and Credit Suisse has already provided for part of the total damages, the people said.
In the Singapore lawsuit, the bank plans to appeal the damages, arguing that they relate to funds lost due to bad investment decisions rather than just fraud.
A spokesman for Ivanishvili welcomed Singapore’s decision.
“Despite last year’s Bermuda ruling and breach of duty admission in Singapore courts, Credit Suisse continues to frustrate efforts by clients seeking redress for crimes committed by its employees,” said a spokeswoman. person said.
“We expect Credit Suisse to comply fully with the ruling and ultimately accept responsibility for its failures.”
