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June 20, 2022

Credit Suisse dismisses Russian oligarch’s claim for $515m

Credit Suisse has rejected a claim by Russian oligarch Vitaly Malkin for $515.62m (CHF500m) linked to a former client adviser at the bank who was sacked for fraud, reported Reuters.

Malkin was pressing the Swiss banking giant for the money following the conviction of Patrice Lescaudron, according to an earlier report by Sonntagszeitung daily.

Lescaudron was sentenced to five years of imprisonment by a Swiss court in 2018 after he was found exploiting the trust of clients and running a fraudulent scheme that made him tens of millions of francs.

Malkin, who was an ex-business partner of former Georgian prime minister Bidzina Ivanishvili, claimed he had lost $515m because of Lescaudron.

Credit Suisse said that it ‘rejects all the allegations’ by Malkin.

The Swiss bank said in a statement: “Credit Suisse was recognised as the aggrieved party by all criminal authorities seized with this matter.

“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.”

The latest case follows an earlier ruling by a Bermuda court which said that Ivanishvili suffered a loss of $553m due to failures by Credit Suisse’s life insurance unit to prevent fraud committed by Lescaudron.

Credit Suisse said that it would appeal the verdict.

Last week, UK’s Financial Conduct Authority placed Credit Suisse on a watchlist of institutions requiring stringent supervision due to concerns about whether the bank is taking necessary measures to enhance its culture, governance and risk controls.

The bank, earlier this month, flagged a likely second-quarter loss.

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