Former Credit Suisse Banker Subject of Fifth Client Complaint

  • Ex-banker’s clients include Georgian billionaire Ivanishvili
  • A hearing about failed investment is scheduled for Wednesday

Another client of Credit Suisse Group AG has filed a complaint against one of the bank’s former wealth managers, accusing him of criminal mismanagement, forgery and breach of trust.

That brings to five the number of people who have accused the manager of making unauthorized trades. The Frenchman confessed last September to the bank and Geneva police that he traded from client accounts without their permission, forged orders and moved funds from some accounts to cover losses in others, according to people briefed on the case, all part of a scheme that collapsed a year ago when the shares in one of his large investments tumbled.

A spokesman for the prosecutor’s office confirmed that it received the new complaint, but declined to provide any other details. The client, who is Russian, has been asked to be heard as a plaintiff at a preliminary hearing on Sept. 26, according to two people familiar with the proceedings who commented on the case on the condition of anonymity.

Hearing Wednesday

The investigating judge will conduct a separate hearing Wednesday at which the former Credit Suisse banker -- who under Swiss law can only be identified as L. -- is expected to answer questions about his failed investments, one of the people said.

A spokeswoman for Credit Suisse wrote in an e-mail that the bank couldn’t discuss ongoing investigations. She added that the bank continues to cooperate with the Geneva prosecutor and that “the former relationship manager concealed his deceptions from colleagues and that this is to the best of its knowledge an individual case.”

Among the clients that L. admitted to deceiving are former Georgian prime minister and billionaire Bidzina Ivanishvili and ex-Russian senator Vitaly Malkin.

L. has been in a Geneva prison since his January arrest. Simon Ntah, his lawyer, said that his client is fully cooperating with authorities and "takes responsibility while explaining the circumstances surrounding the events."

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