IF ever anyone wanted to know what Swiss private bankers are capable of, they could do worse than follow how one of the world’s best-known billionaires claims to have been treated.
Long accused of behaving in an idiosyncratic manner, currying favour with foreign potentates and rulers, respecting different paymasters, operating behind a veil of secrecy, Switzerland’s finest would appear to be are still up to their old tricks, certainly where the case of Bidzina Ivanishvili is concerned.
A multi-billionaire, one of the richest in Eastern Europe, Ivanishvili is also a politician, former prime mister of Georgia and chairman of its Dream Party. Often described as Georgia’s de facto head, he is the subject of US sanctions over his alleged links to Russia’s government and its oligarchs. He maintains he is pursuing pragmatism, that it would be foolish for Georgia to fall out with its powerful neighbour and that closer trade benefits the economy. In Britain, some MPs have called for the government to follow the US lead.
Since 2022, Ivanishvili has been involved in protracted litigation in Singapore and Bermuda against Credit Suisse. He was a customer of the Swiss banking giant. One of its staff, Patrice Lescaudron, siphoned off more than $1bn from his accounts to cover losses on other clients’ investments. He thought his investments were in profit, instead the cash was being diverted.
Ivanishvili eventually won and secured an admission of liability from Credit Suisse. The court in Singapore ordered Credit Suisse to pay around $500m in damages, finding that the bank had failed to protect Ivanishvili’s funds.
That litigation, which is multi-jurisdictional, continues, with a further decision due in Bermuda this summer. Meanwhile, he is beginning proceedings in Switzerland, to recover over $200m that was lost and not covered by the Singapore and Bermuda actions.
A large portion of the money repaid by Credit Suisse was transferred to the private Swiss bank, Julius Baer to be reinvested in three hedge funds. Now, that relationship has deteriorated, fuelling the suspicion that the Georgian politician is the victim of some wider, darker conspiracy, aimed at eroding his wealth and weakening his international and domestic influence and reach.
Things were fine between him and Julius Baer until recently. Then, about six months ago, Ivanishvili began to suspect he was being denied information regarding the hedge funds and their performance. He complained, demanding to know why he was not being rightfully told.
It was only after he repeatedly threatened a lawsuit that Julius Baer began supplying the details. However, latterly, relations have worsened with the hedge funds failing to meet deadlines for returning his investments. According to its agreement with Ivanishvili it falls upon Julius Baer to ensure the hedge funds meet their obligations. Unable to obtain any guidance or explanation from the bank, he believes Julius Baer and the hedge funds are acting together, against his interests.
In mid-December 2024, Julius Baer said it would be debanking him because he was active in politics. They offered no explanation for the move. In the end, the bank relented.
Further pressure was applied, with the bank telling Ivanishvili’s family members and his companies that their bank accounts were also subject to sanctions. This was not the case, and it has led him to believe Julius Baer is participating in a coordinated effort to cause him harm. Ivanishvili is to sue the bank, to force it to come into line and to pay compensation. In the best traditions of Swiss bankers, Julius Baer is saying nothing publicly. On it goes.
