Georgian oligarch Bidzina Ivanishvili loses Swiss bank dispute
Ivanishvili loses Swiss bank dispute
In another legal setback for former Georgian prime minister and oligarch Bidzina Ivanishvili, he has lost his dispute with Credit Suisse.
Accusing Credit Suisse of money laundering, Ivanishvili, currently the honorary chairman of the ruling Georgian Dream party, saw his allegations denied by Geneva’s chief financial prosecutor Yves Bertoz after a year-and-a-half-long investigation, according to Bloomberg.
The report highlights Ivanishvili’s disagreement with the court’s decision, stating, “We strongly disagree with the reasoning, which ignores the evidence that shows the willingness of the account manager to hide and launder the proceeds of the fraud.”
Bloomberg notes that following the acquisition of Credit Suisse by Switzerland’s largest bank, UBS, which was teetering on the edge of bankruptcy, the legal dispute involving Bidzina Ivanishvili also became a matter for UBS.
___________________________________
The dispute between Ivanishvili and Credit Suisse originated in 2011 when Ivanishvili was a client of the bank.
During this period, one of the bank’s managers, Patrice Lescadron, uncovered fraudulent activities involving the embezzlement of funds from confidential accounts, including those of Ivanishvili and his business partner, Russian oligarch Vitaly Malkin.
A report by Swiss regulatory firm Finma revealed that Credit Suisse failed to take action despite numerous warnings and suspicious circumstances.
Ivanishvili accused Credit Suisse of negligence in protecting his investments, seeking $800 million in damages, alleging he incurred losses due to the actions of a former manager.
However, Credit Suisse’s trust department deemed Ivanishvili’s claim excessive and petitioned the court for its dismissal.
In 2018, Patrice Lescadron was found guilty of fraud, spending two years in pre-trial detention before his release in 2019. In July 2020, he tragically committed suicide. Lescadron had previously admitted to secretly covering losses of clients affected by his poor investment decisions during the 2008 financial crisis with funds stolen from other clients’ accounts.
In March 2022 Ivanishvili reportedly won a lawsuit against Credit Suisse, receiving over $500 million.
Following Russia’s invasion of Ukraine, Ivanishvili faced additional legal disputes with Credit Suisse, including the freezing of his £2.7 billion account over concerns about the funds’ potential Russian origin.
In September 2022, the oligarch argued in a Singapore court that Credit Suisse’s inaction led to a $1.27 billion loss.
By February 2023, Bloomberg reported that Credit Suisse Group AG had paid Ivanishvili $210 million as part of the prolonged lawsuit.
