(Bloomberg) — Billionaire Bidzina Ivanishvili, who sued a Bermuda division of Credit Suisse Group AG for banker fraud, suffered losses of $553 million, partly due to the negligence of the life insurance unit, a judge ruled.
Forensic accountants working on the case still have to calculate damages for Ivanishvili, Bermuda Supreme Court Chief Justice Narinder Hargun said Tuesday when he rendered his verdict against Credit Suisse Life Bermuda in Hamilton, the island nation's capital.
CS Life failed to take adequate measures to prevent the “fraudulent management of policy accounts by Patrice Lescaudron, because it prioritized the revenue Mr. Lescaudron generated for Credit Suisse over the interests of his clients,” Hargun said, referring to the banker who committed the crime.
“If Mr. Ivanishvili had known that fraudulent transactions had been made in his accounts with the bank, he would not have agreed to take” the policies with CS Life, the judge said.
Credit Suisse Life Bermuda “intends to vigorously file” an appeal of the verdict, the company said Tuesday in a statement. The Zurich-based bank said last week that it had already made reserves linked to the impending decision against Credit Suisse Life Bermuda, which could exceed US$500 million in damages.
Scammer
However, the magnitude of the sentence may encourage Ivanishvili and other victims of convicted fraudster Lescaudron to claim further civil damages in Singapore and Switzerland.
Major financial crime prosecutors in Geneva continue to investigate Credit Suisse for its possible responsibility for failing to arrest Lescaudron, which could result in criminal charges and trial.
Lescaudron was convicted of fraud by a Swiss court in 2018. Credit Suisse has said that the Frenchman, who took his own life, was a lone wolf hiding his fraudulent activity. The Bermuda trial was seen as proof of whether the argument will isolate the bank from future responsibilities.
The ruling is the latest in a long series of setbacks suffered by the Zurich-based company, which is recovering after the double blow of the bankruptcy of Greensill Capital and Archegos Capital.
Original Note:
Credit Suisse Client Lost Over $550 Million, Judge Rules (1)
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
Últimas Noticias
Debanhi Escobar: they secured the motel where she was found lifeless in a cistern
Members of the Specialized Prosecutor's Office in Nuevo León secured the Nueva Castilla Motel as part of the investigations into the case
The oldest person in the world died at the age of 119
Kane Tanaka lived in Japan. She was born six months earlier than George Orwell, the same year that the Wright brothers first flew, and Marie Curie became the first woman to win a Nobel Prize
Macabre find in CDMX: they left a body bagged and tied in a taxi
The body was left in the back seats of the car. It was covered with black bags and tied with industrial tape
The eagles of America will face Manchester City in a duel of legends. Here are the details
The top Mexican football champion will play a match with Pep Guardiola's squad in the Lone Star Cup
Why is it good to bring dogs out to know the world when they are puppies
A so-called protection against the spread of diseases threatens the integral development of dogs
