GENEVA (Reuters) – Former Credit Suisse shopper adviser Patrice Lescaudron was sentenced to 5 years imprisonment by a Geneva courtroom on Friday for abusing the belief of shoppers and setting up a fraudulent scheme that introduced him tens of hundreds of thousands of francs.
Lescaudron, who’s French, appeared in courtroom for the decision sporting a grey fleece sweatshirt emblazoned with Ferrari, the identify of the Italian sports activities automotive he was stated to have bought with the cash he amassed.
Judge Alexandra Banna stated the ex-banker was responsible of great fraud and forgery in his dealing with of former shoppers, together with former Georgia Prime Minister Bidzina Ivanishvili and Russian oligarch Vitaly Malkin, “over a very long period of eight years”.
Reading the three-judge tribunal’s verdict, she stated he had brought about losses totaling 143 million Swiss francs ($152 million) and made private good points of 30 million francs.
The adviser was “considered as a star” on the financial institution’s Russia desk, however had “fooled the bank and the client” by means of a “clever fraud” during which he “copy-pasted signatures on documents so as to falsify transfer orders”, Banna stated.
Lescaudron, 54, admitted in courtroom to having falsified trades and hidden mounting losses.
Lawyers for billionaire Ivanishvili have stated that fraudulent actions by the adviser misplaced the previous Georgian chief tons of of tens of millions of dollars.
Zurich-based Credit Suisse has stated Lescaudron violated inner guidelines and Swiss regulation and labored to hide these actions from the financial institution.
“The former relationship manager demonstrated a high degree of criminal energy, violating internal controls and rules as well as Swiss law and concealing his criminal activities from Credit Suisse colleagues,” the financial institution stated in January.
“Two years of criminal investigation have not revealed any indication that the former relationship manager was helped with his criminal actions by other Credit Suisse employees.”
But legal professionals for Ivanishvili have stated Lescaudron was not a lone wolf, saying senior administration had information of his exercise and that the financial institution didn’t take motion however as an alternative continued to cost fee funds on the merchandise bought. They stated in August that Ivanishvili was suing Credit Suisse.
Maurice Harari, a lawyer for Ivanishvili, was quoted by the Swiss every day Le Temps as telling the courtroom through the pleadings: “Surveillance was not insufficient, it was non-existent.”
Ivanishvili’s complaints relate to the dealing with of portfolios between 2005 and 2015, when it’s alleged cash was stolen and substantial losses resulted from unauthorized investments.
Prosecutor Yves Bertossa on Friday advised reporters he wouldn’t touch upon the financial institution’s position within the matter as a result of it was the topic of a parallel process.
Lescaudron’s sentence matched what prosecutors had sought.
Lescaudron amassed a private wealth of 32 million francs, together with homes in Switzerland and the Italian seaside resort of Porto Cervo, and a Picasso lithograph, stated to be lacking.
His belongings, together with the Ferrari, a Rolex watch and jewels that had been “financed with … commissions” stated to be the product of his crimes, have been seized amongst gadgets listed in a seven-page sequestration.
He was ordered to make repayments totaling greater than $130 million, however was not barred from future work in banking.
The Porto Cervo home was seized, however the Lescaudrons have been allowed to maintain their household house in Arzier, Switzerland.
Lescaudron has already spent two years in pre-trial detention, the place he was famous for cooperation on the case and exhibiting “exemplary behavior”, the courtroom stated.
“The sentence is very harsh,” Lescaudron’s lawyer Simon Ntah stated. “But it leaves a bit of hope, it allows him to have a perspective.” Ntah added he hoped the sentence can be commuted for good conduct so Lescaudron might be launched in 2019.
Lescaudron sat passively all through the studying, stood for the decision and was escorted again to jail on the finish.
($1 = zero.9389 Swiss francs)
Reporting by Stephanie Nebehay, writing by Brenna Hughes Neghaiwi; Editing by Michael Shields and Catherine Evans