Troubles continue to mount for Credit Suisse after it rejected legal claims by Russian businessman Vitaly Malkin related to more than half a billion dollars in losses.

Russian oligarch Vitaly Malkin is suing Credit Suisse for the loss of around $515 million, according to a report by «Sonntagszeitung» on Sunday, which he linked to the late Patrice Lescaudron, a former relationship manager at the bank. Malkin has hired U.S. law firm Quinn Emanuel for the case.

In response, Credit Suisse rejected Malkin's claims, noting that the bank was in the clear on the matter and that the losses were not related to Lescaudron’s criminal activities.

«Credit Suisse was recognized as the aggrieved party by all criminal authorities seized with this matter,» the bank said in a statement. «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.» 

2018 Ruling

In 2018, Lescaudron was sentenced to five years of imprisonment before being released early in 2020 and committing suicide. The Geneva court ruling claimed that Lescaudron had abused client trust and was guilty of serious fraud and forgery in handling former clients including Malkin alongside business partner and ex-Georgian Prime Minister Bidzina Ivanishvili. Lescaudron also admitted in court to having falsified trades and hidden losses.

Separately, a Bermuda court ruled in favor of Ivanishvili in March this year against a Credit Suisse insurance unit over fraud committed by Lescaudron. The bank faces damages in excess of $500 million and will look to appeal the verdict. 

More recently, Swiss prosecutor Yves Bertossa reportedly discovered $60 million of funds he believes were laundered through Credit Suisse with Lescaudron once again being named as the central player. While the bank claims that Lescaudron was acting alone, it could still face charges under Swiss law over lacking surveillance or organization to prevent such acts.