Credit Suisse pays $ 475 million in fines and $ 200 million in debt in a series of coordinated settlements with four regulators in three countries over its role in the long-term “tuna bond” scandal Agreed to exempt.
Swiss banks have reached individual agreements with the US Department of Justice and the Securities and Exchange Commission, the Financial Conduct Authority in the United Kingdom, and Finma in Switzerland.
Swiss financial regulators have also completed a year-long investigation into corporate espionage in Credit Suisse, resulting in Tidjane Thiam becoming CEO.
Finma’s investigation into what is known as a “spygate” found a total of seven cases that spy on current and former staff.
Regulators said they had written rebuke of the two individuals and initiated enforcement proceedings against the three, but did not identify them.
A lawyer representing a Swiss banking subsidiary attended a hearing in Brooklyn on Tuesday afternoon and pleaded guilty to wire fraud. 8-year-old Mozambique case It caused a slowdown in what was one of Africa’s fastest growing economies. Credit Suisse has also signed a deferral of prosecution agreement with US authorities.
Banks are trying to draw a line under a series of historic scandals, dealing with the aftershock of a niche financial company twin implosion Greensill Capital And family office Archegos Capital This spring.
However, Credit Suisse faces a civil trial over the Mozambique proceedings filed by London creditors. In August, the judge of the High Court, who presided over the proceedings, set the date of September 2023. 13-week trial.. The US settlement was first reported by Bloomberg.
“This is an important step in getting complete relief for the people of Mozambique,” said Keith Oliver, International Head of Law Firm Peters & Peters, on behalf of the Attorney General of Mozambique.
“Through the ongoing criminal charges in Mozambique and the pursuit of civil proceedings in the United Kingdom, the Republic continues to promise to bring responsible persons to trial.”
Credit Suisse has signed a three-year postponed prosecution agreement with the Justice Department, signed a cease and desist order by the SEC, and agreed to a total of $ 275 million in settlements with two US regulatory agencies.
Banks also had to forgive $ 200 million in debt to Mozambique as part of the agreement to pay the FCA a $ 200 million penalty.
Credit Suisse will pay $ 230 million in the third quarter in connection with the settlement.
Since 2013, Credit Suisse and Russian investment bank VTB have arranged $ 2 billion in bonds and loans to Mozambique. This is to ensure maritime safety by establishing a national tuna fishing fleet after the country discovers offshore natural gas.
The loan was made by a company to purchase equipment, including boats, from Gulf shipbuilder Privinvest, using state guarantees issued without the approval of the Mozambique Parliament. The true size of debt was hidden from international donors and the IMF until 2016.
The discovery of loans, the collapse of businesses, and the subsequent defaults have left one of the poorest countries in the world in a year-long financial crisis as donors cut off aid. The national public integrity center estimates that fallout has driven Mozambiques over 1.9 meters into poverty.
The investigation revealed that the $ 500 million loan raised could not be funded. US prosecutors said $ 200 million had disappeared in the kickback of Mozambique officials.
Three former Credit Suisse bankers who arranged the bonds pleaded guilty to handling the kickback in a groundbreaking trial in the United States. 2019, The Privinvest salesman was acquitted in all respects. Privinvest denies cheating.
Mozambique has the largest criminal justice against scandals involving more than 12 suspects, including former government officials and the son of a former president. They denied allegations including corruption and money laundering.
The province of Mozambique and Credit Suisse are also suing each other in court in London, each in turn from the debt investor.
The FCA has dropped a criminal investigation into Credit Suisse over the 2018 Mozambique scandal.
VTB will pay more than $ 6 million to resolve the SEC’s negligence claims in disclosures related to the 2016 tuna bond restructuring without admitting or denying fraud. VTB has not been charged with criminal activity.
Additional Report by Stephen Morris and Stephania Palma
Credit Suisse pays $475m in fines to settle Mozambique ‘tuna bonds’ case Source link Credit Suisse pays $475m in fines to settle Mozambique ‘tuna bonds’ case