Breach of Trust: Credit Suisse Unit Ordered to Pay Damages
In a recent ruling, a Singapore court has ordered a Credit Suisse unit to pay billionaire Bidzina Ivanishvili a substantial sum, which is expected to reach hundreds of millions of dollars, according to a report by Bloomberg. The court determined that damages amounted to $926 million, with certain deductions for a previous settlement. However, the final amount will be adjusted to avoid any double recovery, as a Bermuda court had previously awarded Ivanishvili over $600 million in damages in a related case.
Failure to Safeguard Assets: Singapore Court’s Judgment Highlights Negligence
The judgment found that Credit Suisse Trust, based in Singapore, had breached its duty to the plaintiffs by failing to protect the trust assets. The court’s ruling, published on Friday, shed light on the trust’s failure to prevent private banker Patrice Lescaudron from accessing the assets further. Lescaudron had been convicted in 2018 for orchestrating a fraudulent scheme, where he misappropriated funds from Ivanishvili’s accounts to conceal mounting losses in the portfolios of other Russian clients.
Legal Battles Continue: Credit Suisse Plans to Appeal the Ruling
Credit Suisse responded to the judgment, expressing their disagreement with the decision. A spokesperson for the bank stated in an email that the published judgment is erroneous and raises significant legal concerns. The spokesperson further mentioned that the trust plans to vigorously pursue an appeal against the ruling.
The ruling in Singapore brings attention to Credit Suisse’s life insurance unit, which was accused by the Bermuda judge who ruled in Ivanishvili’s favor last year of turning a blind eye to Lescaudron’s illicit activities. Additionally, Geneva prosecutors are conducting a separate criminal investigation to determine whether Credit Suisse holds any responsibility for Lescaudron’s fraudulent actions.