CS Victims: Credit Suisse Continues to Show Contempt for Client

LONDON, March 30, 2022 /PRNewswire/ -- Following the unprecedented verdict in Bermuda which found a subsidiary of Credit Suisse at fault for client losses of more than $550 million, the Bank's trust arm in Guernsey is continuing to disrespect client instructions, according to CS Victims.

The most recent request for distribution to the Trust's beneficiaries had been requested using the appropriate channels on 4^th March, yet the Credit Suisse trustees have consistently delayed payment, 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. Although it shall be stressed that so far no specific regulations have ever been produced by the Trustee and/or no reference or copies have been provided to the beneficiaries. We have to say that the client has nevertheless addressed two rounds of communications by the Trustee but the Trustee is still continuing withholding the payment with no reasons for that.

The judgement 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 judgement in Bermuda, the client is pursuing the Singapore legal proceedings that could eventually result into over USD 600 million in damages to be paid by Credit Suisse subsidiaries to the beneficiaries. 

A spokesperson commented:

'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 emphasized 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.'

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.

SOURCE CS Victims