CS Victims: New Anti-Record of Credit Suisse in Infringement of Client's Rights

LONDON, April 4, 2022 /PRNewswire/ -- The irresponsible, wrongful, and dishonest attitude of the Credit Suisse Group has been continued by the Bank's Guernsey Trustee, which has failed to distribute the funds to the Trust's beneficiaries, according to CS Victims. The Trustee unreasonably delayed the payment for a month – thereby refusing to comply with the instructions of the client issued on 4 March, which expected the distribution to be made according to the established practice – within hours.

Yet, the Credit Suisse Trustee has consistently delayed payment, demanding irrelevant documentation, making unwarranted and absurd excuses, raising completely unfounded reasons, and citing certain regulations which had and still bear relevance on the exercise of the duties by the Trustee when it comes to making a distribution. It should be stressed that to date, no specific regulations have ever been referenced by the Trustee and no copies have been provided to the beneficiaries. In response, the client had addressed these issues in two rounds of communications to the Trustee but despite this, the Trustee continues to withhold payment.

By such a dramatic delay of the Bank's trustee, it established a new anti-record in violation of its basic obligations and blatant infringement of the client's rights.

This attitude of Credit Suisse Group towards its clients is not new. Previously, it was mentioned that the Bermuda Supreme Court handed down the judgment which ordered a Credit Suisse subsidiary to pay more than USD 500 million to its wronged clients.  The judgement in Bermuda found that CS Life (Bermuda) Ltd. had breached its obligations, 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 legal proceedings in Singapore that could eventually result into over USD 600 million in damages to be paid by Credit Suisse subsidiaries to the beneficiaries.

In this case, the unhealthy and unprecedented chain of actions (or inactions) was "successfully" continued by its trustee in Guernsey, which had been disregarding the client's request.

A spokesperson commented:

"It should be noted that the actions of the Credit Suisse yet again demonstrate its contempt towards the client by blatantly violating their rights and inflicting reputational damage. Such actions could be considered as unlawful. We must stress that by the month's delay to distribute the funds, the Trustee has achieved an anti-record in disrespecting the client's requests and damaging their interests. 

We should no longer be surprised, considering the background of the parties' relationship, particularly the ongoing civil litigation in jurisdictions against Credit Suisse. Despite this, we are astonished how the Bank's subsidiaries act against the rights and interests of the client. It goes without saying that this type of behavior is forcing the client to consider all legal options and we expect a decision to be made within the week.

For further information, please contact [email protected] or visit https://csvictims.com/

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