Some Credit Suisse Clients Hit By Unauthorised Advisor Action

Tom Burroughes

1 September 2020

Credit Suisse,which yesterday confirmed that a small number of its clients were affected by unauthorised actions by one of its client advisors, has taken legal action over the matter.

Bloomberg – citing unnamed sources – on Sunday reported that Credit Suisse has fired a Zurich-based banker who forged documents on an over-the-counter contract for an African wealth management client. The deception was exposed earlier this year and caused a loss of about SFr10 million for the bank, and also affected some other clients, the report said. The banker has reportedly been fired.

“Credit Suisse confirms a case from the first quarter of 2020 in which a small number of clients were affected by unauthorised actions of a client advisor. Credit Suisse took appropriate legal measures and informed the affected clients and relevant regulators,” the bank told this publication in a statement yesterday. It gave no further details.

The Bloomberg report said that the fraud and losses were booked in the unit led by Raj Sehgal. The unit serves the non-resident Indian community and sub-Saharan Africa. Clients are in the process of being compensated, it said, citing an unnamed source.

Sehgal was named head of the Africa and non-resident Indian business about two years ago, the report added.