Monday, 6 December 2021

Credit Suisse fined $475 million by US and UK authorities for securities fraud

5 min read

19 October 2021 – Credit Suisse Group AG has agreed to pay nearly $475 million to US and UK authorities, including nearly $100 million to the U.S. Securities and Exchange Commission (SEC), for fraudulently misleading investors and violating the Foreign Corrupt Practices Act (FCPA) in a scheme involving two bond offerings and a syndicated loan that raised funds on behalf of state-owned entities in Mozambique. 

According to the SEC's order, these transactions that raised over $1 billion were used to perpetrate a hidden debt scheme, pay kickbacks to now-indicted former Credit Suisse investment bankers along with their intermediaries, and bribe corrupt Mozambique government officials. The SEC's order finds that the offering materials created and distributed to investors by Credit Suisse hid the underlying corruption and falsely disclosed that the proceeds would help develop Mozambique's tuna fishing industry. Credit Suisse failed to disclose the full extent and nature of Mozambique's indebtedness and the risk of default arising from these transactions.

The SEC's order also finds that the scheme resulted from Credit Suisse's deficient internal accounting controls, which failed to properly address significant and known risks concerning bribery.

Re-disseminated by The Asian Banker from U.S. Securities and Exchange Commission

Diary of Activities