The Genevan wealth manager is grappling with a hefty claim for damages from a major fraud scandal. After a years-long tug-of-war in the court system, Union Bancaire Privée has been ordered to hand over files.
More than $68 million: that's what liquidators of a defunct Saudi Arabia vehicle want from family-controlled Union Bancaire Privée (UBP). The Genevan private bank is being ordered by Switzerland's highest court to hand over confidential documents relating to the case, Swiss investigative website «Gotham City» (behind paywall, in French) reported on Thursday.
The Swiss ruling denies an appeal by UBP against Hugh Dickson and Mark Byers, liquidators of Saudi Arabia vehicle Saad. The dispute reflects a tiny slice of a decade-old case around Saad, which forensic examiners term the largest Ponzi scheme in history. UBP didn't comment to finews.com on the matter.
Saudi House of Cards
Saad left international and regional banks on the hook for billions of dollars when it defaulted in 2009. A Cayman Islands-led investigation found both the al-Gosaibis, a Saudi Arabian family, as well as Maan al-Sanea, a Kuwaiti businessman, to have defrauded banks via Saad for years.
Saad began to topple when it couldn't pay creditors amid the global financial crisis. The legal consequences are playing out in courts around the world – including in Switzerland. Before the house of cards collapsed, al-Sanea transferred $204 million of company money from Daiwa, a bank in Japan – $68 million of which landed in Geneva with UBP.
Swiss Money Trail
Saad's liquidators followed the money trail to Switzerland and asked a Swiss bankruptcy court to require the wealth manager the money, as well as internal documentation on Saad and al-Sanea. UBP fought the move through the Swiss court system, culminating in the most recent setback.
Eleven years after the fraud emerged, UBP has to deliver. The case doesn't end there, as «Gotham City» noted: Saad's liquidators would like to use UBP's millions to pursue other outstanding claims.
