Former Georgia Prime Minister Bidzina Ivanishvili stood trial and accused Credit Suisse of failing to prevent hundreds of millions of dollars in losses.

Bidzina Ivanishvili accused Credit Suisse’s trust unit in Singapore of failing to «take the appropriate steps» to prevent losses linked to fraud committed by deceased Geneva-based banker Patrice Lescaudron during a court hearing yesterday.

In an opening statement, Ivanishvili’s lawyers said the trustee had calculated losses totaling $818.2 million, below the original estimate of $1.27 billion. The losses are allegedly from $1.1 billion of assets placed under custodianship at Credit Suisse Trust in 2005.

«I thought I came to the experts who will be working to protect my capital and my family,» according to a «Reuters» report quoting Ivanishvili via a video link from Georgia.

«Overreaching»

In 2018, Lescaudron was convicted by a Swiss court of forging the signatures of ex-clients, including Ivanishvili, over an eight-year period that was marked by fraudulent trades and hidden losses. The scheme would make Lescaudron tens of millions of dollars before he subsequently took his own life, court documents said. 

In response, Credit Suisse has asked the court to dismiss Ivanishvili's claim as it allegedly had no knowledge at the time that Lescaudron was mismanaging assets.

«CS Trust invites the Court to dismiss the claim as being against the wrong defendant and on the wrong basis,» it said, adding that the legal proceedings should be considered «overreaching».

The hearing continues on Tuesday. 

Bermuda Case

Meanwhile, Credit Suisse also has legal proceedings involving Ivanishvili in a Bermuda court that recently delivered a ruling against the Swiss bank’s life insurance unit, claiming it turned a blind eye to Lescaudron’s fraudulent activities. The insurance subsidiary has been ordered to pay plaintiffs, including Ivanishvili, more than $600 million in damages.

Credit Suisse has repeatedly insisted that Lescaudron acted as a lone wolf and intends to «vigorously pursue» an appeal of the ruling.