Credit Suisse Sued by Libyan Investment Fund Over Bribery Claims
Credit Suisse Sued by Libyan Investment Fund Over Bribery Claims
(Bloomberg) --
The Libyan Investment Authority sued Credit Suisse Group AG in London after a bribery case as part of a long-running fight with U.S. and European banks over bribery allegations.
The LIA, the sovereign wealth fund set up by former Libyan dictator Moammar Qaddafi, filed the lawsuit against the Swiss bank Monday, according to court records. The complaint was described as a “commercial fraud” case in the court docket.
While additional court documents aren’t available, the case is likely to related to documents the LIA has sought in other lawsuits related to Walid Al-Giahmi. The businessman, who the fund has accused of taking bribes to arrange deals, is also a defendant in the suit filed this week.
Societe Generale SA paid nearly 1 billion euros ($1.1 billion) in 2017 to settle a bribery lawsuit related to Al-Giahmi. As part of that case, the LIA also sought documents related to the businessman and four other banks, including Credit Suisse and JPMorgan Chase & Co.
The LIA sued JPMorgan last year over a $6 million bribe they said was paid to fund-officials through Al-Ghiami in order to secure a $200 million bond deal for Bear Stearns, which was bought by the bank in 2008.
Credit Suisse declined to comment on the lawsuit.
The LIA has said Al-Giahmi acted as a fixer, bribing and intimidating the fund’s officials, while receiving payment from the banks. In previous lawsuits, the fund has said he was well connected with Qaddafi’s regime and had personal connections with members of his family, including his son Saif Al Islam.
Al-Giahmi said in a text message that the LIA “have been after me since 2011 for exposing their activities.”
“The real scandals are in the uncontested evidence now before the courts on how Gaddafi’s bankers plundered their country are key to its current instability,” Al-Giahmi said.
Two asset managers, GLG Partners Asset Management Ltd. and Dubai-based Frontier Investment Management Partners Ltd., are also defendants in the lawsuit. Neither company immediately responded to phone calls and emails requesting comment.
The LIA hasn’t won every case related to allegations against U.S. and European lenders. In 2016, a London judge rejected claims that Goldman Sachs Group Inc. leveraged its reputation as well as lavish meals and gifts to win the sovereign wealth fund’s trust.
To contact the reporter on this story: Eddie Spence in London at espence11@bloomberg.net
To contact the editor responsible for this story: Anthony Aarons at aaarons@bloomberg.net
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