Written by Sarah Praetorius

UBS Switzerland, the former Credit Suisse, Julius Baer, HSBC Private Bank (Suisse), Banque Pictet, Banque Cramer, Kendra Securities House, Natixis, and other – in some cases foreign – banks are accused of being entangled in a wide-reaching money laundering scheme linked to the fraudulent shipping company, NewLead Holdings.

Background: Stock Manipulation and Shifted Millions

At the center of the scandal is the Greek shipping company, NewLead Holdings. TransAsia Commodities Investment Ltd., a London-based commodities trader, first sued the company in New York in 2013 over a failed coal-trading joint venture (NewLead JMEG). The lawsuit also accused the firm of a classic «pump-and-dump» scheme: NewLead allegedly inflated its share price and then dumped stock on unsuspecting investors.

After a $22 million judgment in TransAsia’s favor in 2017, NewLead CEO Michael Zolotas is said to have moved assets through a web of shell entities and conspirators—using, among others, accounts at UBS, Credit Suisse, and Julius Baer.

Alleged Failures of Due Diligence

TransAsia now seeks to be awarded damages in an amount to be determined by the New York State Supreme Court, alleging that the banks failed to conduct due diligence when servicing shell company accounts linked to NewLead insiders. Finews.ch has reviewed the petition.

Shell Entity in Zug

One specific allegation concerns the entity M&F Chartering Liberia, whose account at HSBC Private Bank (Suisse) was reportedly used for money laundering purposes. The case takes on added weight with the involvement of Tallon Trading AG (also known as Tallon Suisse), a now-defunct company once domiciled in Zug, which allegedly served as a vehicle that concealed assets via Credit Suisse and Julius Baer.

Swiss Law Firm Lalive Representing Petitioner

The Geneva-based law firm Lalive, known for its expertise in white-collar crime, civil litigation, and asset recovery, is representing TransAsia in Switzerland. Serge Turko, CEO of TransAsia, told finews.ch that over 1,000 pages of supporting evidence have been filed in court to substantiate the claims. Lalive declined to comment on the matter when approached by finews.ch.

The full scope of the case may never come to light: forensic investigators reportedly found that more than 100,000 emails were deleted in an attempt to obstruct the investigation.