New York court rejects ADCB bid to reopen fraud case against Credit Suisse

Abu Dhabi Commercial Bank’s attempt to reopen its fraud claim against Credit Suisse, centring on an ill-fated restructuring of a US$40 million investment vehicle in 2007, has been turned down by a court in New York.

ADCB had sought to renew its prior motion against Credit Suisse, which was dismissed in August 2011, citing documents from a third party that had not been submitted the first time around.

The documents purportedly showed that Credit Suisse engaged in self-dealing (taking advantage of its position in the transaction to advance its own interest rather than the client’s) in executing the restructuring transaction, according to court filings.

The bank claimed the documents also highlighted “criminal indictments and a civil complaint in federal proceedings against several Credit Suisse bankers who allegedly engaged in a massive scheme involving mismarking and mispricing of assets similar to those involved in the restructuring transaction here.”

But the appellate division of the supreme court of the state of New York dismissed the bid on Tuesday, noting that the documents had not been produced by ADCB during the original proceedings, even though they were in the bank’s possession at the time.

“ADCB never made a request for additional time to review the documents before filing its opposition to defendant’s motion, nor did it raise these ‘new’ facts during oral argument on the motion two months later,” the court said in its decision.

The court acknowledged that the federal indictments and complaint showed new facts of mismarking and mispricing that ADCB was not aware of at the time the motion was being decided.

However, “the facts contained in the indictments and complaint do not show that the mismarking of assets affected the restructuring transaction”, said the court in its decision, describing ADCB’s contention to the contrary as “speculative”.

Both ADCB and Credit Suisse declined to comment on the decision.

ADCB’s original claim, filed in November 2010, related to an offer made by Credit Suisse in 2007 to restructure ADCB’s $40m investment in Stanfield Victoria, a structured investment vehicle (SIV).

The bank alleged that Credit Suisse failed to disclose conflicts of interest and “other material information” related to the restructured investment, called Farmington.

ADCB claimed it was also required to buy credit default swaps, a form of insurance against default, to protect Credit Suisse’s exposures to Farmington.

The rating agency Standard & Poor’s was also named in the suit, with ADCB claiming that S&P, meanwhile, is alleged to have given “inaccurate investment-grade ratings” to assets underlying the SIV.

Judge O Peter Sherwood ruled in August 2011 that Credit Suisse had fairly warned ADCB about the risks involved, dismissing the claim in its entirety. Sherwood also noted that S&P’s “allegedly inferior rating methodology” did not constitute fraud.

jeverington@thenational.ae

THE CARD

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2.30pm: Handicap Dh 76,000 (D) 1,400m

3pm: Handicap Dh 64,000 (D) 1,200m

3.30pm: Shadwell Farm Conditions Dh 100,000 (D) 1,000m

4pm: Maiden Dh 60,000 (D) 1,000m

4.30pm: Handicap 64,000 (D) 1,950m

At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

The rules on fostering in the UAE

A foster couple or family must:

be Muslim, Emirati and be residing in the UAE
not be younger than 25 years old
not have been convicted of offences or crimes involving moral turpitude
be free of infectious diseases or psychological and mental disorders
have the ability to support its members and the foster child financially
undertake to treat and raise the child in a proper manner and take care of his or her health and well-being
A single, divorced or widowed Muslim Emirati female, residing in the UAE may apply to foster a child if she is at least 30 years old and able to support the child financially

Formula Middle East Calendar (Formula Regional and Formula 4)

Round 1: January 17-19, Yas Marina Circuit – Abu Dhabi

Round 2: January 22-23, Yas Marina Circuit – Abu Dhabi

Round 3: February 7-9, Dubai Autodrome – Dubai

Round 4: February 14-16, Yas Marina Circuit – Abu Dhabi

Round 5: February 25-27, Jeddah Corniche Circuit – Saudi Arabia

Specs

Engine: Dual-motor all-wheel-drive electric

Range: Up to 610km

Power: 905hp

Torque: 985Nm

Price: From Dh439,000

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The specs

Engine: Four electric motors, one at each wheel

Power: 579hp

Torque: 859Nm

Transmission: Single-speed automatic

Price: From Dh825,900

On sale: Now

Famous left-handers

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- Paul McCartney

- Albert Einstein

- Jack the Ripper

- Barack Obama

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In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013

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How to apply for a drone permit

Individuals must register on UAE Drone app or website using their UAE Pass
Add all their personal details, including name, nationality, passport number, Emiratis ID, email and phone number
Upload the training certificate from a centre accredited by the GCAA
Submit their request

What are the regulations?

Fly it within visual line of sight
Never over populated areas
Ensure maximum flying height of 400 feet (122 metres) above ground level is not crossed
Users must avoid flying over restricted areas listed on the UAE Drone app
Only fly the drone during the day, and never at night
Should have a live feed of the drone flight
Drones must weigh 5 kg or less

Temple numbers

Expected completion: 2022

Height: 24 meters

Ground floor banquet hall: 370 square metres to accommodate about 750 people

Ground floor multipurpose hall: 92 square metres for up to 200 people

First floor main Prayer Hall: 465 square metres to hold 1,500 people at a time

First floor terrace areas: 2,30 square metres

Temple will be spread over 6,900 square metres

Structure includes two basements, ground and first floor

Specs

Engine: Duel electric motors
Power: 659hp
Torque: 1075Nm
On sale: Available for pre-order now
Price: On request

While you're here

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Key facilities

Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
Premier League-standard football pitch
400m Olympic running track
NBA-spec basketball court with auditorium
600-seat auditorium
Spaces for historical and cultural exploration
An elevated football field that doubles as a helipad
Specialist robotics and science laboratories
AR and VR-enabled learning centres
Disruption Lab and Research Centre for developing entrepreneurial skills

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.