A group of Credit Suisse Wealth Management clients who claim have been the victims of an estimated $1bn fraud are demanding the Swiss bank return over $150m in commissions and fees that were charged as part of the scam.
The group, who call themselves CS Victims, blame the bank's personnel for the fraud, saying that the $150m in fees paid were a "direct result of illegal activity which proper systems and controls should have prevented."
The demand follows an embarrassing spy scandal surrounding Credit Suisse and former top executive Iqbal Khan that has brought the Swiss financial sector into disrepute.
This latest scandal is just further proof that Credit Suisse's own controls have completely failed, resulting in illegal activities which ultimately damage clients, shareholders and the public trust"
"This latest scandal is just further proof that Credit Suisse's own controls have completely failed, resulting in illegal activities which ultimately damage clients, shareholders and the public trust," a spokesman for CS Victims said.
"We once again ask chairman Urs Rohner and CEO Tidjane Thiam to procure the return of monies earned by the Bank as a direct result of illegal activities, for which at least one employee has already been sentenced to five years in prison by the Geneva court."
An investigation commissioned by Credit Suisse and carried out by the Homburger law firm cleared Thiam of any involvement but Switzerland's second biggest bank is still dealing with the reputational damage.
"Credit Suisse needs to get its house in order, or it will continue to fail customers. We understand that management is dealing with the fallout of the surveillance of Iqbal Khan but that does not absolve Thiam and Rohner from acting responsibly and respectfully towards clients who are victims of the fraud. We urge them to engage with the clients to understand how the fraud was able to take place and why the full amount of the stolen funds has not been returned, notwithstanding findings of misappropriation by the Geneva court and the Bank's promises to repay the affected clients."
The full results of a Credit Suisse internal investigation into the fraud affecting CS Victims and involving a relationship manager who was convicted and sent to prison have never been released.