Credit Suisse (CSGN.S) on June 19 denied an allegation by Russian businessman Vitaly Malkin for 500 million francs ($515.62 million) he tied to a former client adviser at the bank who was convicted of fraud.
The SonntagsZeitung published that Malkin was going after the bank for the money following the conviction of Patrice Lescaudron. A Geneva court in 2018 imposed a five-year sentence on Lescaudron for exploiting the trust of clients and organizing a fraudulent scheme that fetched him tens of millions of francs.
In response to the newspaper report published on Sunday, Credit Suisse said in a statement:
“Credit Suisse was recognized as the aggrieved party by all criminal authorities seized with this matter. The criminal proceedings against the former relationship manager established that the former client did not suffer any damages resulting from the relationship manager’s criminal activities. Credit Suisse rejects all of the client’s allegations.”
Malkin could not be instantly reached for comment.
A Bermuda court decided in March that former Georgian Prime Minister Bidzina Ivanishvili and his family are to be paid damages “substantially in excess of $500 million” from Credit Suisse’s local life insurance arm as a result of fraud committed by Lescaudron.
The bank has said it plans to appeal the ruling.
Judge Alexandra Banna said at Lescaudron’s 2018 sentencing that he was convicted of grave fraud and forgery in his management of former clients, including Ivanishvili and Malkin, “over a very long period of eight years”.
Lescaudron confessed in court to having altered trades and concealed accruing losses.
($1 = 0.9697 Swiss francs)