Credit Suisse Group AG ("Credit Suisse") was a multinational investment bank and financial services company based in Switzerland. Credit Suisse’s shares were registered with the SEC and traded on the New York Stock Exchange. Credit Suisse Securities (Europe) Limited ("CSSEL") was a wholly-owned subsidiary Credit Suisse headquartered in London.
According to the documents in this case, between 2013 and March 2017, Credit Suisse, through its subsidiary CSSEL, conspired with others to defraud investors in securities related to a Mozambican state-owned entity, Empresa Moçambicana de Atum, S.A. ("EMATUM"), which Mozambique created to develop a state-owned tuna fishing project. Credit Suisse perpetrated the fraud by making numerous material misrepresentations and omissions relating to, among other things (i) the use of loan proceeds; (ii) kickback payments to CSSEL bankers and the risk of bribes to Mozambican officials; and (iii) the existence and maturity dates of debt owed by Mozambique, including other private loans arranged by Credit Suisse. Credit Suisse represented to investors that the loan proceeds would only be used for the tuna fishing project. Instead, loan proceeds obtained from investors were diverted to kickbacks of approximately $50 million to CSSEL bankers and bribes totaling approximately $150 million to senior Mozambican government officials.
On October 19, 2021, the DOJ filed an information in the Eastern District of New York against CSSEL alleging a conspiracy to commit wire fraud. On the same date, CSSEL entered into a plea agreement with the DOJ. Under the terms of the agreement, CSSEL agreed to pay a fine of $500,000, which was wrapped into the $247,520,000 fine Credit Suisse agreed to pay in its parallel deferred prosecution agreement.
In a related proceeding initiated on the same date, the DOJ filed an information in the Eastern District of New York against Credit Suisse alleging a conspiracy to commit wire fraud. On the same date, Credit Suisse entered into a deferred prosecution agreement with a term of three years with the DOJ. Under the terms of the agreement, Credit Suisse agreed to pay a fine of $247,520,000, which included $500,000 levied against CSSEL in a parallel proceeding, plus forfeiture of $10,344,865. The DOJ agreed to credit $47,200,000 of the fine and the total forfeiture amount against the amount Credit Suisse paid to the SEC in the agency's parallel proceeding and $24,752,000 against the amount the company paid to the U.K. Financial Conduct Authority in its parallel proceeding. The fine represented a 15% departure below the bottom of the U.S. Sentencing Guideline range. Credit Suisse also agreed to report on the status the company's anticorruption compliance for a term of three years.
In a related administrative proceeding announced on October 19, 2021, the SEC ordered Credit Suisse to cease and desist violations of the books and records and internal controls provisions of the FCPA as well as other securities fraud violations. Under the terms of the settlement, Credit Suisse agreed to pay disgorgement of $26,229,233 plus prejudgment interest of $7,822,639 and a civil fine of $65 million.
