A new development has shaken the long-standing lawsuit between the UBS and Georgian billionaire Bidzina Ivanishvili, involving the mismanagement of assets on the account of the late Starbanker Patrice Lescaudron. Between 2006 and 2015, Lescaudron allegedly mismanaged or lost around 800 million francs.
Recently, the US government imposed sanctions on Ivanishvili, accusing him of undermining Georgia’s “Euro-Atlantic integration” with his pro-Russian stance. This development could significantly impact ongoing proceedings against the UBS.
Despite the sanctions, Ivanishvili managed to secure a large payment just before they took effect. In October 2024, the UBS paid 461 million US dollars, including interest and costs, to Ivanishvili, following a court ruling in Singapore. However, the sanctions may complicate the enforcement of future payments.
In contrast, the lawsuit on the Bermudas remains unresolved. In the spring of 2022, the Credit Suisse was ordered to pay over 600 million US dollars in fines, as the bank was accused of not taking sufficient measures to prevent Lescaudron’s fraudulent activities. If the court rules similarly in the Bermudas, the due amount could be reduced further.
Even if the UBS is found liable, the question of whether and when Ivanishvili will receive his money remains. The US sanctions could block payments to the billionaire, further complicating the legal situation.
The sanctions against Ivanishvili were imposed by the Biden administration, but the new US administration under President Donald Trump could revise or even lift the sanctions. The new Secretary of State, Marco Rubio, is a close Trump ally, and his political agenda is still unclear.
At the center of the affair remains Patrice Lescaudron, the former Credit Suisse advisor who was fired in 2015 and later convicted to five years in prison and a 130 million US dollar fine in a Geneva criminal trial. Lescaudron’s suicide in the summer of 2020 left many questions unanswered, and a legacy that the UBS and other parties continue to pursue.
The combination of US sanctions, ongoing court proceedings, and political power shifts has made the Ivanishvili case a highly complex matter. As the UBS tries to resolve the inherited problems, it remains unclear how the sanctions will impact future payments.