The ultra-wealthy Eastern Europeans who were defrauded by a former banker at Credit Suisse are pursuing the bank the world over. They have now won one of their battles in Singapore, according to information obtained by finews.asia.
The appeals court in Singapore reached a majority verdict against Credit Suisse – and in favor of the family of Bidzina Invanishvili. The decision settled the question of whether Singapore was the right jurisdiction to receive a complaint by the rich ex-prime minister of Georgia against a trust unit of the Swiss bank.
This is the conclusion from the legal documents made available to finews.asia.
Case Upon Case
Ivanishvili and other Eastern European former clients of Credit Suisse have been trying to get the bank take responsibility for the misdeeds of former employer Patrice Lescaudron ever since 2015. The private banker, who worked at the Geneva branch of the bank, was convicted for a series of acts including fraud and forgery by a court in Switzerland. The oligarchs claimed that the bank hadn’t been prudent in their handling of the case and claimed damages of as much as $1 billion from the bank – going public under the name of «CS Victims».
The victims of Lescaudron’s fraudulent activities didn’t get any traction in Switzerland. The verdict against Lescaudron from 2018, which gives mention to Credit Suisse as an injured party, was upheld by the highest Swiss court in Lausanne in February 2020. The prosecutor in Geneva has meanwhile launched yet another case against the ex-banker, which covers another period of his activities.
Credit Suisse Is Fighting the Cases
That’s not it though. Former clients are pursuing their own private actions against units of the bank in a series of jurisdictions, attempting to show how they contributed to the loss of assets suffered. The cases launched globally are mainly focusing on getting access to documentation that plaintiffs hope will show how the bank failed to check on their former employee.
The Swiss bank is fighting the legal cases vehemently. One of the basic issues fought over is the place of jurisdiction as was the case in Singapore. Both sides have won and lost some cases, insiders to the dossier said. One case is pending in the Bermudas, similar claims have been rejected in New Zealand and in Florida, while a New York court partially agreed with the plaintiffs.
The Start of Private Suit
The case in Singapore is important as it was where the whole case started. According to the legal documents from Singapore, Ivanishvili in 2015 detected huge losses at his Mandalay Trust, which is based in the city-state and for which Credit Suisse Trust, a unit of the bank, managed assets. He alerted the bank, which proceeded to investigate the claims and finally launched a lawsuit against the former employee Lescaudron.
In 2017, Ivanishvili started his claim for compensation in Singapore against the trust-unit of the bank. After years of legal wrangling, the claim can now be filed.
Ivanishvili: Active Investor
The bank said that the decision was solely one of jurisdiction. Credit Suisse Trust however vehemently defends itself against the claim.
Credit Suisse always has said that it is an injured party in the case, having been deceived by the banker. He didn’t receive any support from another employee in his misdeeds, the bank says.
Credit Suisse will now have to prove as much in Singapore. The legal documents available to finews.asia show that Ivanishvili wasn’t a passive victim only, but instead took an active interest in the investment decisions of Mandalay Trust and was in regular exchange with Lescaudron and other Credit Suisse bankers.
The legal action taken against the Swiss bank by Ivanishvili is proof of his resourcefulness and suggests that Credit Suisse won’t quickly get rid of its former client.
