Credit Suisse Group AG (NYSE: CS) agreed to pay $475 million to settle fraud charges in connection with the financing of a multimillion-dollar loan for a state-owned tuna fishing project in Mozambique.
Authorities in the United States and the United Kingdom filed civil and criminal complaints against the Switzerland-based global financial institution for defrauding investors.
According to the U.S. Department of Justice (DOJ), the $475 million will be paid to authorities in the UK and the United States as well as restitution to investors. The court will determine the amount of restitution based on the agreed methodology to calculate the proximate loss for victims of Credit Suisse’s fraudulent conduct.
Credit Suisse pleads guilty to defrauding investors
Credit Suisse admitted defrauding investors in the securities of Empresa Moçambicana de Atum S.A. (EMATUM), the state-owned entity responsible for developing the tuna fishing project, according to the DOJ.
The global financial institution through its subsidiary in the United Kingdom, Credit Suisse Securities (Europe) Limited (CSSEL), and co-conspirators misled investors and potential investors in EMATUM.