Credit Suisse rejects $515 million claim linked to fraudulent adviser

A brand is pictured on the Credit score Suisse financial institution in Geneva, Switzerland, June 9, 2022. REUTERS/Denis Balibouse

ZURICH, June 19 (Reuters) – Credit score Suisse (CSGN.S) on Sunday rejected a declare by Russian businessman Vitaly Malkin for 500 million francs ($515.62 million) he linked to a former consumer adviser on the financial institution who was convicted of fraud.

The SonntagsZeitung reported that Malkin was pursuing the financial institution for the cash following the conviction of Patrice Lescaudron.

A Geneva courtroom in 2018 sentenced Lescaudron to 5 years imprisonment for abusing the belief of shoppers and putting in a fraudulent scheme that introduced him tens of tens of millions of francs.

Responding to the newspaper report revealed on Sunday, Credit score Suisse stated in an announcement: “Credit score Suisse was recognised because the aggrieved celebration by all felony authorities seized with this matter.”

“The felony proceedings towards the previous relationship supervisor established that the previous consumer didn’t undergo any damages ensuing from the connection supervisor’s felony actions,” the financial institution added.

“Credit score Suisse rejects the entire consumer’s allegations.”

Malkin couldn’t instantly be reached for remark.

A Bermuda courtroom dominated in March that former Georgian Prime Minister Bidzina Ivanishvili and his household are due damages “considerably in extra of $500 million” from Credit score Suisse’s native life insurance coverage arm as a result of fraud dedicated by Lescaudron.

The financial institution has stated it intends to attraction the decision. learn extra

Choose Alexandra Banna stated at Lescaudron’s 2018 sentencing that he was responsible of great fraud and forgery in his dealing with of former shoppers, together with Ivanishvili and Malkin, “over a really lengthy interval of eight years”.

Lescaudron admitted in courtroom to having falsified trades and hidden mounting losses.

($1 = 0.9697 Swiss francs)

Reporting by Paul Carrel; enhancing by Barbara Lewis

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