London Daily

Focus on the big picture.
Thursday, Sep 11, 2025

Credit Suisse Was Alerted to Banker’s Misconduct Years Before Charges

Credit Suisse Was Alerted to Banker’s Misconduct Years Before Charges

Credit Suisse Group AG overlooked red flags for years while a rogue private banker stole from billionaire clients, according to a report by a law firm for Switzerland’s financial regulator.

The private banker, Patrice Lescaudron, was sentenced to five years in prison in 2018 for fraud and forgery. He admitted cutting and pasting client signatures to divert money and make stock bets without their knowledge, causing more than $150 million in losses, according to the Geneva criminal court.

The regulator, Finma, publicly censured Credit Suisse in 2018 for inadequately supervising and disciplining Mr. Lescaudron as a top earner, and said he had repeatedly broken internal rules, but it revealed little else about the bank’s actions in the matter. Credit Suisse said it discovered Mr. Lescaudron’s fraud in September 2015 when a stock he had bought for clients crashed.

However, the report, commissioned by Finma in 2016 and reviewed by The Wall Street Journal, found Mr. Lescaudron’s activities triggered hundreds of alerts in the bank that weren’t fully probed in the 2009-15 period studied. In addition, around a dozen executives or managers in Credit Suisse’s private bank knew Mr. Lescaudron was repeatedly breaking rules but turned a blind eye, proposed lenient punishment for his misconduct or otherwise glossed over the issues because he brought in around $25 million in revenue a year, the report found.

It said Mr. Lescaudron’s “disregard of internal directives and guidelines, the inadequate safeguarding of client documentation as well as unauthorized settlements of client transactions had been known to the bank since June 2011.”

The report found the irregularities were analyzed and escalated to a certain extent, but not enough. “None of the parties involved felt responsible for conclusively analyzing the already known as well as the resulting questions and drawing the necessary conclusions,” it said.

A business-risk manager who reported some of the incidents to superiors told law-firm investigators that he had feared further escalation would be seen as disloyal or that he would lose his job, according to the report.

Credit Suisse lost a bid last year in Switzerland’s Supreme Court to prevent the 272-page report by Swiss law firm Geissbühler Weber & Partner from being accessed by Geneva prosecutors still investigating the bank over the matter.

According to the report, the bank fired two executives after its own investigations into the fraud, and three more got written sanctions in their employment files.

A Credit Suisse spokesman said the report was part of the early stages of the review Finma concluded in 2018. It said the review “did not reveal any facts that would support the criminal complaints against Credit Suisse.” After Finma’s 2018 rebuke, Credit Suisse said it had improved its systems and added hundreds more compliance staff.

Mr. Lescaudron served a two-year pretrial detention and was released in 2019. He killed himself last year.

Finma declined to comment. The law firm said it couldn’t comment. The Geneva prosecutor’s office declined to comment on its investigation. A lawyer for Mr. Lescaudron’s family declined to comment.

The Journal reviewed a copy of the law firm’s April 2017 report obtained by some former clients of Mr. Lescaudron who formed a group called CS Victims. The former clients include Bidzina Ivanishvili, a billionaire former prime minister of Georgia who is suing Credit Suisse in Singapore and Bermuda for around $800 million, alleging breach of trust. Credit Suisse is contesting Mr. Ivanishvili’s claims and denies any wrongdoing.

A spokesperson for CS Victims said the report shows Credit Suisse ignored alerts and warnings and had multiple opportunities to prevent Mr. Lescaudron’s crimes but chose not to. The spokesperson said the bank “must now accept responsibility and compensate the clients without delay.”

The law firm’s report said it didn’t find misconduct by Credit Suisse employees executing Mr. Lescaudron’s falsified orders. But it said the fact the orders could be falsified for so long without anyone noticing showed weaknesses in the bank’s antifraud measures.

The high-profile case is among several controversies that have bruised Credit Suisse’s standing with shareholders and the global rich who expect it to be a fortress for their money. Finma started enforcement proceedings in September over the bank’s handling of employee surveillance after a spying scandal, and Swiss federal prosecutors charged it with failing to prevent money laundering through the bank by a Bulgarian criminal organization and an employee more than a decade ago.

In January, Credit Suisse said it would post a fourth-quarter 2020 loss because of an $850 million legal charge for toxic security sales.

Credit Suisse said it was cooperating with Finma in the spying enforcement proceedings and would incorporate lessons learned. It denies the allegations in the federal criminal charges.

Chief Executive Thomas Gottstein said in December the bank would be more disciplined to avoid future litigation.

Mr. Lescaudron joined Credit Suisse in 2004 after working for a cosmetics company in Russia and as an auditor. He hadn’t worked in banking but swiftly became one of the bank’s top revenue producers as a handler to Russian and post-Soviet state billionaires.

Newsletter

Related Articles

0:00
0:00
Close
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
×