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Credit Suisse clarifies espionage case with former star banker

ZURICH, July 25 (Reuters) – Credit Suisse (CSGN.S) has reached an out-of-court settlement with former star banker Iqbal Khan on allegations of espionage that led to the resignation of CEO Tidjane Thiam, a spokesman for Das told the Swiss bank on Sunday with.

“All those involved have agreed to settle the matter, and this matter is now closed,” Simone Meier confirmed a report in the Swiss newspaper NZZ on Sunday.

A spokesman for Khan said his client would not comment on the matter. UBS (UBSG.S), where Khan is now co-president of global wealth management, declined to comment.

The agreement, the details of which were not disclosed, ended a dispute that rocked the normally tranquil world of Swiss banking when allegations of corporate espionage against Credit Suisse surfaced in September 2019.

The affair became public when Khan, having defected to UBS, confronted a private investigator who followed him and his wife through Zurich.

What Credit Suisse initially described as a fraudulent espionage case involving then Chief Operating Officer Pierre-Olivier Bouee expanded as details of other surveillance cases emerged.

In addition to the departures of Bouee and Thiam, a private detective who organized the surveillance committed suicide after the affair became known.

The NZZ am Sonntag said the settlement would withdraw Khan’s lawsuits against the bank and the private investigators.

“The investigations in connection with the criminal complaint are being discontinued,” said Erich Wenzinger, spokesman for the public prosecutor’s office for the canton of Zurich, of the newspaper.

The enforcement proceedings of the Swiss financial market FINMA last year against the claims of Credit Suisse are still ongoing, said a spokesman. He did not want to comment on how long the process, which began last September, would take.

(This story corrects the reference to criminal charges in paragraph 8)

Reporting by John Revill, additional reporting by Oliver Hirt; Adaptation by Mark Potter and Edmund Blair

Our Standards: The Thomson Reuters Trust Principles.

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