Credit Suisse could owe two billion dollars in decade-old fraud case

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LONDON (ShareCast) - Credit Suisse (NYSE: CRP - news) has a potential two billion euros of exposure over fraud that took place a decade ago in relation with National Century Financial Enterprises in the US, Reuters reports.

According to a federal judge's determination on how to account responsibility, the Swiss bank could owe $2.0bn for its part in the activities of Lance Poulsen, who co-founded National Century in 1990 and was Chief Executive. Poulsen is currently serving a 30-year sentence in prison.

The US Department of Justice said National Century misused investor money, funnelled corporate funds to top executives, and lied to investors.

Credit Suisse was the placement agent for many of National Century's notes.

National Century bondholders have sued Credit Suisse for $1.5bn although the amount could be greater due to interest accumulated over the last nine years.

By 10:37, shares of Credit Suisse were up 0.5% to 27.53 Swiss francs.

CP