Credit Suisse Faces Raps For Aiding Bulgarian Cocaine Traffickers

Credit Suisse has been slapped with criminal charges in a Swiss court for allowing an alleged Bulgarian cocaine trafficking gang to launder millions of euros, some of it stuffed into suitcases, Brenna Hughes Neghaiwi and Silke Koltrowitz reported for Reuters.

Photo Insert: Swiss prosecutors allege the country's second-biggest bank and one of its former relationship managers did not take all necessary steps to prevent the alleged drug traffickers from hiding and laundering cash.

Swiss prosecutors say the country's second-biggest bank and one of its former relationship managers did not take all necessary steps to prevent the alleged drug traffickers from hiding and laundering cash between 2004 and 2008.

"Credit Suisse unreservedly rejects as meritless all allegations in this legacy matter raised against it and is convinced that its former employee is innocent," the bank said in a statement to Reuters.

In the first criminal trial of a major bank in Switzerland, prosecutors are seeking around 42.4 million Swiss francs in compensation from Credit Suisse, which added that it would "defend itself vigorously in court."

The case has attracted intense interest in Switzerland, where it is seen as a test for a potentially tougher stance by prosecutors against the country's banks.

The indictment runs to more than 500 pages and centers on relationships that Credit Suisse and its ex-employee had with former Bulgarian wrestler Evelin Banev and multiple associates, two of whom are charged in the case.

A second indictment in the case charges a former relationship manager at Julius Baer with facilitating money laundering. A legal representative for the ex-Credit Suisse employee, who cannot be named under Swiss privacy laws, said the case was unjustified and his client denied wrongdoing.

A lawyer for the two alleged gang members, who face charges of multiple counts of misappropriation, fraud, and forgery of documents in the Swiss federal court but cannot be named under Swiss privacy laws, declined to comment. A lawyer for the former relationship manager at Julius Baer did not respond to requests for comment.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic