CS Victims: Credit Suisse Won’t Return Funds Stolen in $1B Fraud

Despite assurances to a Geneva court, Credit Suisse has thus far refused to return funds stolen from clients during a near $1 billion years-long fraud executed by one of its own employees, who has already been convicted by a criminal court, CS Victims, a group of clients who are the victims of the crimes, announced today.

The Swiss criminal courts have found that monies were stolen from CS Victims’ accounts. During a trial in early 2018, the Credit Suisse relationship manager dealing with those victims admitted that he had been able to evade the bank’s systems and controls for more than seven years, stealing and moving funds between client accounts to conceal the fraud from the victims.

Credit Suisse promised to the court that if it would allocate frozen funds to the bank, then the bank would compensate affected customers (inter alia CS Victims); the court granted this request during the trial.

Despite the court’s findings and Credit Suisse’s promises to the court, the bank has refused to return the full amount of stolen funds. Although monies were stolen as early as 2007, 12 years ago, the bank has shown no intention of paying any interest on anything it does return.

Credit Suisse has since claimed that full repayment of the stolen funds will only be made once the Court of Appeal has given a final judgment. However, the stolen funds are not at issue in the appeal and the repayment delay is entirely without justification.

A spokesperson for CS Victims commented, “It is a fact, found by the Swiss court and acknowledged by the bank, that monies were stolen from our clients and Credit Suisse have admitted their obligation to return the full amount of these funds. The bank’s failure to act, despite its having discovered the fraud almost four years ago, is yet another example of its disgraceful treatment of acknowledged victims, who are blameless for crimes committed by Credit Suisse’s personnel. There is no reason why the bank is withholding payment in full and we urge Credit Suisse to repay all of the stolen funds immediately.”

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Terry Mulreany
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