CS Victims Again Demand Credit Suisse Return $150 Million in Illegal Fees Amidst Latest Scandal
Geneva – CS Victims, a group of Credit Suisse Wealth Management clients who are victims of an estimated $1 billion fraud perpetrated by the bank’s personnel, once again demanded that Credit Suisse management and its Board procure the return of commissions and fees – estimated at more than $ 150 million – paid to the Bank as a direct result of illegal activity which proper systems and controls should have prevented.
The renewed demand comes as Credit Suisse has been forced by its regulator to make changes to its operations and is dealing with a new scandal involving the use of private detectives against an employee, leading to the resignations of Chief Operating Officer Pierre-Olivier Bouee and Remo Boccali, Head of Bank Security. The same executive team has overseen the Bank’s activities during these times. According to numerous press reports, although Chief Executive Officer Tidjane Thiam was cleared by Credit Suisse’s internal investigation, questions still remain about an alleged acrimonious relationship with Iqbal Khan, the former head of Wealth Management who left this month for UBS, and apparent closeness to Bouee, with whom Thiam had worked at Prudential, Aviva and McKinsey.
The full results of a Credit Suisse internal investigation into the fraud affecting CS Victims and involving a relationship manager who was convicted and sent to prison have never been released.
“This latest scandal is just further proof that Credit Suisse’s own controls have completely failed, resulting in illegal activities which ultimately damage clients, shareholders and the public trust,” a spokesman for CS Victims said. “We once again ask Chairman Urs Rohner and CEO Tidjane Thiam to procure the return of monies earned by the Bank as a direct result of illegal activities, for which at least one employee has already been sentenced to five years in prison by the Geneva court.”
The latest demand follows previous calls for justice by CS Victims that Credit Suisse, Thiam and Rohner have failed to address.
The fees paid to Credit Suisse during the fraud include significant amounts generated from management of the affected client accounts and investment in the Bank’s own products and funds.
“Credit Suisse needs to get its house in order, or it will continue to fail customers. We understand that management is dealing with the fallout of the surveillance of Iqbal Khan but that does not absolve Mr. Thiam and Mr. Rohner from acting responsibly and respectfully towards clients who are victims of the fraud. We urge them to engage with the clients to understand how the fraud was able to take place and why the full amount of the stolen funds has not been returned, notwithstanding findings of misappropriation by the Geneva court and the bank’s promises to repay the affected clients.”
Information for editors
CS Victims was established by the representatives of certain clients of Credit Suisse.
They are victims of an estimated $1 billion fraud perpetrated by the Bank’s personnel over seven years. At least one of Credit Suisse’s employees has been convicted of fraud and FINMA has highlighted failures in Credit Suisse’s systems and controls which led directly to crimes being committed.