Legal News

Decade-Old Fraud May Expose Credit Suisse to about $2 Billion in Liabilities
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

Last Friday, U.S. District Judge James Graham gave an indication that under New York law, Credit Suisse can be held solely responsible for fraud committed a decade ago by Lance Poulsen, the co-founder and CEO of National Century Financial Enterprises, who is presumed insolvent, and is currently serving a 30-year prison term. National Century had filed for bankruptcy protection in 2002.

During a Jan. 7 court hearing, Graham had commented, “there seems to be general agreement that if the plaintiffs succeed in this litigation, they would recover something in the range of almost $2 billion.â€

With Poulsen and Credit Suisse remaining the last defendants in the case, Credit Suisse sought a ruling to avoid bearing the sole responsibility of fraud committed by Poulsen. However, on Friday, Graham observed, “Even if Credit Suisse could prove at trial that Poulsen is insolvent, its argument that responsibility for some portion of his share should be shifted away from Credit Suisse and redistributed among the settling defendants finds no support in the (law).â€

  
What
Where


While it was operating, National Century used to finance medical service providers and bought accounts receivable from them. The purchase money was arranged for by selling notes to investors. Bondholders, including the state of Arizona, Lloyds TSB Bank Plc, MetLife, AllianceBernstein and et cetera, accused that Credit Suisse had deceived them about the status of the company and had overlooked the $2.9 billion fraud.

According to the U.S. Department of Justice, National Century abused the trust of investors, misused their money, funneled company funds to the pockets of its top executives, and persistently lied to investors to hide the commission of fraud.

A trial in the matter would be held on April 1.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




The cases, all in the U.S. District Court, Southern District of New York, are Crown Cork & Seal Co et al v. Credit Suisse First Boston Corp et al, No. 12-05803; Arizona v. Credit Suisse First Boston Corp et al, No. 12-05804; City of Chandler et al v. Bank One NA et al, No. 12-05805; Lloyds TSB Bank Plc v. Bank One NA et al, No. 12-07263; and Metropolitan Life Insurance Co et al v. Bank One et al, No. 12-07264.





 

RELEVANT JOBS

Associate Attorney

USA-PA-Exton

ASSOCIATE ATTORNEY McKenna Snyder LLC, a law firm in Exton, PA has an immediate opening for an ex...

Apply now

Attorney

USA-MI-Sturgis

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Attorney

USA-MI-Coldwater

Qualifications: HaasCaywood is seeking associate attorneys for our Coldwater and Sturgis, Michiga...

Apply now

Insurance Defense Trial Attorney/ Senior Counsel

USA-CA-San Francisco

Job description Trial Attorney - Personal Injury Defense Full Job Description Hickey Smith ...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Education Law Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with ...

Apply Now

Education Law Attorney

USA-CA-Carlsbad

Carlsbad office of a BCG Attorney Search Top Ranked Law Firm seeks an education law attorney with 4-...

Apply Now

Education Law and Public Entity Attorney

USA-CA-El Segundo

El Segundo office of a BCG Attorney Search Top Ranked Law Firm seeks an education law and public ent...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top