CS Victims turns up pressure on Credit Suisse after court verdict
Credit Suisse Group has indicated that an appeal is coming after the Supreme Court decision that went against its Bermuda subsidiary, Credit Suisse Life (Bermuda).
But it is facing other client allegations of a billion-dollar fraud perpetrated by bank personnel elsewhere over seven years.
Former Georgian prime minister Bidzina Ivanishvili won a $500 million lawsuit in Bermuda’s Supreme Court against CS Life Bermuda.
Chief Justice Narinder Hargun concluded this week that Mr Ivanishvili, his family members and two companies were victims of fraud and that the Swiss bank had put revenue ahead of the interests of their clients.
Credit Suisse said: “Credit Suisse Group takes note of the Bermuda Supreme Court’s judgment against a local life insurance subsidiary of Credit Suisse AG, Credit Suisse Life Bermuda, and refers to its press release of March 23, 2022.
“The judgment relates to life insurance policies of one client of Credit Suisse Life Bermuda. The life insurance subsidiary has been closed to new business and in wind-down for more than seven years and has no other material business that will be affected by this judgment.
“The judgment is not yet final and is subject to appeal, which Credit Suisse Life Bermuda intends to vigorously pursue.”
Meanwhile, a group, CS Victims, has been established by the “representatives of certain clients of Credit Suisse”.
In a widely distributed statement today, it said that after the Bermuda verdict, the bank's trust arm in Guernsey is continuing to disrespect client instructions.
CS Victims said that trust beneficiaries are being denied distributions by trustees who are “demanding irrelevant documentation, making unwarranted and absurd excuses, bringing up completely unfounded reasons and citing certain regulations which had, and still bear, relevance on exercise of the duties by the trustee when it comes to making a payment.”
The statement added: “The judgment in Bermuda found that CS Life (Bermuda) Ltd had breached its obligations, had concealed fraud and mismanagement, failed to disclose documents and had not taken steps to recover the losses.
“In addition, Credit Suisse faces multiple regulatory probes across various jurisdictions over compliance and risk failings.
“Following the judgment in Bermuda, the client is pursuing the Singapore legal proceedings that could eventually result into over USD600 million in damages to be paid by Credit Suisse subsidiaries to the beneficiaries.”
A CS Victims spokesman said: “The actions of Credit Suisse's trustees are entirely without justification and wrong on every level.
“Citing various reasons for delay in payment, protracting the process in disrespectful manner by grossly violating all the rights of the client is not only factually wrong but is a veiled threat to destroy the client's reputation and inflict moral damage.
“It is also to be emphasised that in fact Credit Suisse and its trust arm in Guernsey are one and the same acting in concert on the extremely disrespectful way of violating their own duties, and duties versus their client.
“It is noteworthy that the Bermuda Court found that Credit Suisse had utterly failed in its duties to its clients and it is clear that it is similarly failing in this situation.
“It is also crystal clear that the trustees are acting on the instructions of Credit Suisse.
“Our legal counsels are presently preparing a legal claim to start proceedings against both parties without delay and seeking damages, both monetary and reputational, for this clear case of blackmail.”
Last Friday, the same group issued a statement which read: “Once again, Credit Suisse seems more concerned with serving its own interests rather than those of its clients.
“The trustees are disrespecting the client's wishes and are not performing their duties to the beneficiaries by delaying payment without any adequate explanation.
“The client is extremely disappointed and we urge the trustees to resolve these issues without further delay.”
Credit Suisse declined to comment Thursday, other then referring to their press release on the Bermuda verdict: Decision by a Court in Bermuda (credit-suisse.com)