CS Victims Demand Return of Stolen Funds As Credit Suisse Face a Plethora of Scandals
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, have demanded the immediate return of funds stolen by the Bank.
At the conclusion of the trial of the Relationship Manager in February 2018, the judgement of the Geneva Criminal Court ordered Credit Suisse to repay more than $120m which had been stolen from the victims’ accounts. Despite Credit Suisse being legally and factually responsible for the fraudulent transfers, the Bank has refused to comply with the Court’s judegement for over three years..
The demand follows extensive recent media reporting of the scandal and FINMA’s investigation. FINMA itself has also publicised its findings that Credit Suisse did little to prevent the fraud and mismanagement of client funds, choosing to ignore repeated warning signs, and failed to adequately supervise the Relationship Manager’s activities.
The demand comes as Credit Suisse continues to struggle with multiple scandals despite CEO Thomas Gottstein’s much-vaunted vow to start 2021 with a ‘clean slate.’ In recent weeks, the collapse of Greensill Capital has led to a possible loss of $3bn for the Bank against net income last year of $2.9bn. It has also been reported that Credit Suisse faces significant losses following the collapse of Archegos, which compounded risk management and complicance concerns evident in the CS Victims fraud. The scandals have led to credit agencies downgrading their outlook for Credit Suisse and analysts warning the much-publicised share buyback may be put on hold, dealing another blow to Gottstein and Urs Rohner, who retires this year after a contentious tenure as Chairman.
“These funds were stolen from the clients and Credit Suisse is defying the decision of the Geneva Court by refusing to return the full amount,” a spokesman for CS Victims said. “Credit Suisse has not provided any reasonable explanation for over three years and we demand that repayment is made immediately.”
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