Former Georgia Prime Minister Bidzina Ivanishvili was told New Zealand courts were the wrong venue for recovery of some $US125 million investment losses following frauds allegedly perpetrated by a Credit Suisse employee out of Switzerland.
Mr Ivanishvili is a French national. He retired from Georgian politics in late 2103 after serving thirteen months as prime minister. Reports link his business wealth to the privatisation of state assets in Russia.
The High Court was told Mr Ivanishvili’s family trust discovered significant financial losses in 2015. Net value dropped from $US417 million to $US294 million. There are allegations trust investments were mismanaged in some cases and stolen outright in others. False financial information was provided to him over a period of time, Mr Ivanishvili alleges. Assets were administered initially out of Switzerland, later out of Guernsey. A Credit Suisse employee is currently serving a five year jail term for his role in the Ivanishvili trust.
Mr Ivanishvili is looking to hold Credit Suisse liable for his losses. Opening shots were fired in the New Zealand courts. In March 2014, control of Ivanishvili trust assets was switched from a Credit Suisse corporation in Canada to Credit Suisse Trust Ltd in New Zealand. Mr Ivanishvili alleges Credit Suisse in New Zealand breached its duties as trustee: failing to properly review and monitor investments. Credit Suisse denies liability. It says trustee decisions were made independent of the bank.
Justice Venning ruled their legal dispute be heard in the Swiss courts. The relevant banking records and most of the witnesses reside in Switzerland. There are no business connections or relevant transactions involving New Zealand. Also relevant are contractual arrangements entered into in Canada and the Bahamas.
Mr Ivanishvili said he is prejudiced by any hearing in the Swiss courts; Swiss law does not recognise the concept of a trust as it exists in English law.
Ivanishvili v. Credit Suisse AG – High Court (17.07.18)
18.143