The Supreme Court of Bermuda has ordered Credit Suisse to turn over documents to victims of an estimated $1bn fraud carried out by Credit Suisse from the last seven years, according to Metigen.
The Court ruled that the Bermuda insurance division must hand over documents to victims that the bank had hidden. It also ordered Credit Suisse to provide details of the PwC internal report into the crime, which the bank previously refused to share with the victims.
The ruling follows a similar decision made by a federal court in New York.
A spokesperson for Metigen said: “For five years, the client victims of Credit Suisse have asked the bank to provide answers explaining how it missed such a brazen fraud committed by its own employee for almost a decade.
“At every turn, Credit Suisse has fought its own clients and refused to help. We are pleased that now courts in two countries have ordered Credit Suisse to finally do what’s right and look forward to reviewing any information produced to determine the extent of any legal claims the victims may have against the bank.”
The documents include emails between Credit Suisse employees and details of the transactions, which led to a loss of $400m on life insurance policies. Also included, were the fees and commissions paid to other divisions of Credit Suisse as a result of illegal activity on life accounts.
The Chief Justice issued that Credit Suisse Life pay the costs of the two-day hearing. This involved cross-examination of the Bank’s Swiss law experts by English leading counsel.
The ruling follows the resignation of CEO Tidjane Thiam on 7 February amid an ongoing spying scandal, as well as the demanded resignation of chairman Urs Rohner. Thomas Gottstein has been appointed to replace Thiam as the new CEO.
The spokesperson added: “We are delighted with the ruling and look forward to Credit Suisse’s full compliance with the Court’s decision. Credit Suisse has continually flouted its obligations to discover all relevant documents, and has tried to hide behind Swiss law in actively trying to prevent our clients’ efforts to uncover the truth behind the huge losses and the failures of Credit Suisse entities to prevent the same.
“It has been clear for some time that there are fundamental flaws in Credit Suisse’s corporate culture and failures at the highest level. We hope that the appointment of Mr. Gottstein, with his experience in wealth management, will lead to a change in direction for Credit Suisse, including in relation to how clients are treated. We look forward to working with him to bring this situation to a conclusion.”