A two-year police investigation resulted in Zurich prosecutors filing a case against Lex Greensill and four former Credit Suisse bankers. Greensill's supply chain fund collapsed in 2021.
Lex Greensill and four former Credit Suisse bankers are suspects in a Swiss criminal case brought by Zurich's public prosecutor which is expected to be formally opened this month, according to a report in the «Financial Times» (behind paywall) citing people familiar with the matter.
The case was triggered by the collapse of a $10 billion group of funds linked to Greensill Capital that Credit Suisse offered to its clients. It revolves around allegations of mis-selling and suspicion of unfair competition.
A hearing with the prosecutors for four former Credit Suisse managers has been set for June 26, although Greensill himself was not invited to attend. Instead, he submitted a statement in response to questions. A Swiss lawyer representing Greensill in the case said his client had been instructed to keep details of the investigation confidential and would not comment.
Two-Year Investigation
The case was opened following a two-year investigation by Swiss police that included searches of Credit Suisse offices, the homes of four former Credit Suisse bankers, and the hotel room of another, according to the story. It started when an investor in the Greensill supply chain funds filed a complaint with the Zurich police. Subsequent complaints were filed by other investors and the Swiss State Secretariat for Economic Affairs.
Further Investigations
The Swiss case is one of several criminal investigations into the collapse of Greensill Capital, which was advised by former British Prime Minister David Cameron, that specialized in supply chain finance.
In March 2021, Germany's Financial Supervisory Authority filed criminal charges against the management of Greensill Capital's German subsidiary on suspicion of accounting irregularities. The UK Serious Fraud Office announced its investigation later that year into Sanjeev Gupta's business empire, including financing arrangements with Greensill Capital.
