Thursday, June 1, 2023

A Singapore court orders Credit Suisse to pay hundreds of millions to the former prime minister

The Singapore International Commercial Court has sentenced Credit Suisse to pay compensation of US$926 million (€863 million) to magnate Bidzina Ivanishvili, former prime minister of Georgiadue to non-compliance with the fiduciary services provided by its subsidiary in the country, Credit Suisse Trust Limited.

In its decision this Friday, the Singaporean Court has established a deduction of US$79 million (€74 million) to the penalty imposed for the money already paid, in addition to indicating that a previous fine for the same case set in Bermuda last year must be recalculated so that there is no double recovery.

The plaintiffs have established that the defendant breached its obligation to the plaintiffs to safeguard the assets of the Escrow as of March 30, 2008 and considers that they have the right to a statement and orders to that effect, says the sentence, which represents a new setback for the Swiss entity, about to complete its merger with UBS.

“The loss suffered by the claimants is the difference between what would have been achieved if the entire portfolio had been withdrawn and managed by a competent and professional trustee and the assets of the Trust had been unaffected by fraud, and what was actually achieved”, considers the Court.

“The sentence published today is wrong and raises very important legal questions. Credit Suisse Trust Limited intends to file an appeal vigorously,” a Credit Suisse spokesman said in a response sent to Europa Press by email.

The Georgian billionaire’s dispute with Credit Suisse dates back to 2011 when Ivanishvili was a client and fell victim to the scam perpetrated by Patrice Lescaudron, former banker entity private.

The bank has maintained that Lescaudron, who was convicted in 2018 and committed suicide in 2020, concealed his illegal activity from his superiors and colleagues. In this sense, the Swiss criminal case against Lescaudron found that the bank had been an aggrieved party, according to the ‘Financial Times’.

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