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Credit Suisse adviser 'bilked client of millions'

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Credit Suisse adviser 'bilked client of millions'
Photo: AFP
10:25 CET+01:00
A customer service representative for Credit Suisse defrauded a wealthy client of more than 50 million francs, the Tages Anzeiger newspaper reported on Wednesday, citing “well-informed sources”.

The client was “probably from abroad” said the Zurich-based daily, which noted that the employee apparently no longer works for the bank.

It said Credit Suisse, Switzerland's second largest bank, has filed a complaint against him.

In its financial report for the third quarter of 2015, the bank mentions under a section on “customer account matters” that some clients have raised concerns about a “former relationship manager” whose management of their accounts led to investment losses.

“A few clients have claimed that a former relationship manager in Switzerland has exceeded his investment authority in the management of their portfolios, resulting in excessive concentrations of certain exposures and investment losses,” says the report, released in October 2015.

“Credit Suisse AG is investigating the claims, as well as transactions among the clients,” it said.

“No formal proceedings have been initiated at this time.”

Tages Anzeiger said that based on its information the fraud of the customer service representative amounts to more than half of an “operational expenditure” of 98 million francs for dealing with wealth management clients for the third quarter of 2015.

The newspaper said, that according to its sources, the bank will be making further provisions to account for the fraud in the fourth quarter.

It said the issue had come to light as the result of a cleanup ordered by the bank's new CEO Tidjane Thiam.

The bank itself had become aware of the misconduct of their employee and not the affected customer, the newspaper said.

The bank declined to comment on the case. 

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