.news from RussiaSingapore Court Hears Credit Suisse Challenge to $743M Payment to Georgian Billionaire
April 8, 2024 at 11:05 PM
Photo: rbc.ru
Singapore branch of Swiss bank Credit Suisse is challenging the payment of $743 million to billionaire and former Prime Minister of Georgia Bidzina Ivanishvili (Forbes names him the richest person in Georgia with a net worth of $4.9 billion), who lost part of his fortune due to the bank’s actions, Bloomberg reports. Credit Suisse Trust Ltd. lawyer Lee Eng Beng admitted in the Singapore Court of Appeal that the bank’s employees failed to inform their client about illegal payments made by consultant Patrice Lekodron of Credit Suisse’s Singapore branch. He attributed this to «incompetent attempts to address the issue of unauthorized payments». In March of last year, Swiss bank UBS acquired troubled Credit Suisse.
In May 2023, Ivanishvili was awarded $926 million in damages from Credit Suisse. However, the amount was reduced by $79.4 million taking into account payments already made. The billionaire lost part of his investment in the Swiss bank due to Lekodron’s actions. Lekodron secretly withdrew money from clients' accounts, including that of the Georgian businessman. In 2018, a Swiss court found the consultant guilty of forging financial documents and clients' signatures. Lekodron was convicted, but released in 2019, and a year later committed suicide. Ivanishvili filed a lawsuit against Credit Suisse in 2015. His lawyers accused the bank of failing to prevent Lekodron from accessing clients' accounts. The Singapore court found that Credit Suisse’s local branch had breached its obligations to Ivanishvili by failing to safeguard his funds. Credit Suisse has filed an appeal.
Lawyers for Credit Suisse Trust are seeking a reduction in the compensation amount. According to Lee, the bank’s employees raised concerns to management about Lekodron’s illegal activities. The only thing they did not do was inform Ivanishvili about it, the lawyer pointed out. He claims that no one at Credit Suisse Trust knew about Lekodron’s fraud from 2006 to 2008, and the employees «did everything possible» to address the issue.
In May 2023, Ivanishvili was awarded $926 million in damages from Credit Suisse. However, the amount was reduced by $79.4 million taking into account payments already made. The billionaire lost part of his investment in the Swiss bank due to Lekodron’s actions. Lekodron secretly withdrew money from clients' accounts, including that of the Georgian businessman. In 2018, a Swiss court found the consultant guilty of forging financial documents and clients' signatures. Lekodron was convicted, but released in 2019, and a year later committed suicide. Ivanishvili filed a lawsuit against Credit Suisse in 2015. His lawyers accused the bank of failing to prevent Lekodron from accessing clients' accounts. The Singapore court found that Credit Suisse’s local branch had breached its obligations to Ivanishvili by failing to safeguard his funds. Credit Suisse has filed an appeal.
Lawyers for Credit Suisse Trust are seeking a reduction in the compensation amount. According to Lee, the bank’s employees raised concerns to management about Lekodron’s illegal activities. The only thing they did not do was inform Ivanishvili about it, the lawyer pointed out. He claims that no one at Credit Suisse Trust knew about Lekodron’s fraud from 2006 to 2008, and the employees «did everything possible» to address the issue.
By Ekaterina Kuznetsova and David Pashkevich
