The United Kingdom subsidiary of Credit Suisse was sentenced in U.S. federal court in Brooklyn, New York Friday after pleading guilty to wire fraud conspiracy related to the financing of an $850 million loan for a tuna fishing project in Mozambique.
The subsidiary Credit Suisse Securities (Europe) Ltd. was represented by Paul Hastings partner Matthew Herrington at the sentencing, where U.S. District Judge William Kuntz II of the Eastern District of New York ordered it to pay $22,619,174 in restitution along with a $500,000 fine.
The restitution figure was recommended in a joint sentencing memorandum filed Wednesday.
Under a deferred prosecution agreement announced in October, the parent bank Credit Suisse AG owes a total criminal penalty of $247 million.
Herrington, who declined to make any statement during the sentencing, told the Law Journal that his client is “pleased” to bring the proceeding to a conclusion.
“Restitution is rapidly becoming a feature of these types of corporate resolutions,” Herrington said. “Working collaboratively with a strong DOJ team and economic experts, we devised and presented a methodology to the court to which no investors objected. Judge Kuntz adopted that methodology today and Credit Suisse is appreciative of the study and care reflected in the sentencing order.”
Kuntz described the sentencing as a “day of sadness,” noting the impact of the scheme on its victims.
“Perfect justice in this case would involve a power neither I, nor any judge, nor any human being has in their hands,” he said.
As part of the three-year DPA, Credit Suisse also agreed to improve its compliance program and internal controls.