Authorities in the U.S. and U.K. alleged that Credit Suisse did not disclose this material information to investors when it agreed to restructure and exchange the original EMATUM security into a bond with a longer maturity date. The price of EMATUM’s securities declined in April 2016 when Credit Suisse’s fraudulent conduct was revealed. As a result, investors suffered losses.
In a statement, U.S. Attorney Breon Peace for the Eastern District of New York said Credit Suisse and CSSEL engaged in a global criminal conspiracy to defraud investors…This coordinated global resolution demonstrates this Office’s commitment to working across borders with our global law enforcement partners to root out abuse and fraud by financial institutions in order to protect investors here in the United States.”
Credit Suisse also reached parallel settlements with the U.S. Securities and Exchange Commission (SEC) and the U.K. Financial Conduct Authority (FCA).
In a statement, SEC Division of Enforcement Gurbir Grewal said, “When it comes to cross-border securities law violations, the SEC will continue to work collaboratively with overseas law enforcement and regulatory agencies to fulfill its Enforcement mission. Our action against Credit Suisse today is yet another example of our close and successful coordination with counterparts in Europe and Asia.”
