After flagging a possible legal hit several days ago from a court ruling in Bermuda over damages linked to ex-Georgian Prime Minister Bidzina Ivanishvili, Credit Suisse’s fears came true yesterday with the bill totaling more than $500 million.

A Bermuda court ruled in favor of Bidzina Ivanishvili and his family against Credit Suisse’s local life insurance arm which owes the former Georgian Prime Minister damages «substantially in excess of $500 million», according to a «Reuters» report citing the verdict.

The court said that Ivanishvili and his family were due the damages as a result of fraud committed by ex-Credit Suisse advisor Pascale Lescaudron.

«CS Life did not take action or adequate action to prevent Mr. Lescaudron's fraudulent mismanagement of the policy accounts because it was prioritizing the revenues Mr Lescaudron generated for Credit Suisse over the interest of its clients,» said Chief Justice Narinder Hargun of the Supreme Court of Bermuda.

«The judgment is not yet final and is subject to appeal, which Credit Suisse Life Bermuda intends to vigorously pursue,» the bank said in a statement. 

Forged Trades

Ivanishvili was a Credit Suisse client from 2005 to 2015 and he alleges that Geneva-based private banker Lescaudron, who was appointed to handle his investments in 2006, forged trades that led to hundreds of millions of losses.

In 2018, Lescaudron was convicted by a Swiss court for forging the signature of former clients over an 8-year period, including Ivanishvili. Credit Suisse was recognized as a victim of Lescaudron’s concealed illegal activities.

Lescaudron admitted to falsifying trades and hiding losses as part of a multi-million dollar scheme and was sentenced to prison before he committed suicide in 2020.

Singapore Case

In addition, Ivanishvili will also seek legal action against Credit Suisse in Singapore where the «trust business is adopting the same tactics to avoid responsibility», according to the ex-prime minister’s spokesperson. 

Ivanishvili is seeking a further $300 million in the Singapore case which is set to go on trial in September.