Credit Suisse Geneva Banker Said to Send Client Funds to Wife
22 Jun 2016

The Credit Suisse Group AG wealth manager at the heart of a trading scandal told prosecutors in interviews that he took clients’ money and moved it into personal accounts in Monaco and Dubai, according to four people with knowledge of the investigation.

The banker, who can only be identified as “L” under Swiss law, moved $1.5 million into his wife’s account at a bank in Monaco in 2008, said two of the people, who asked not to be identified because the proceedings are ongoing. A second transfer of $2 million was made three years later into the account of a Dubai firm that he controlled, the people said.

For months after L’s initial confession to prosecutors last September that he was moving clients’ money around to cover investment losses, the 52-year-old maintained he never profited from the falsified transactions, the people said.

The revelations from his interviews with prosecutors are the latest developments in a probe that raises questions about Credit Suisse’s wealth management business and how one of its managers was able to falsify client trades for seven years before one big bet on a small-cap U.S. drugmaker went badly wrong, forcing him to confess his wrongdoing.

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