The U.S. Securities and Exchange Commission is investigating whether Credit Suisse improperly shifted money in its private banking unit to obscure a drop in asset growth amid the U.S. probe, said a person familiar with the matter.
U.S. District Judge William Dimitrouleas today accepted the plea agreement and said it included a recommendation that Lack be sentenced to five years’ probation. The agreement also recommended that Lack receive no fine or be forced to make restitution, the judge said.
“As a condition of probation the lawyers are going to recommend that I require you to cooperate in any investigation they might be interested in,” Dimitrouleas said, noting Lack had already begun to cooperate with federal investigators.
“I’m very sorry for what I did and I apologize,” Lack told the judge.Of course, the restitution numbers for the active enablers such as Lack, etc., would be very large. The plea is to a Title 18 offense for which restitution is available without a specific agreement in the plea. Although the restitution number and the tax loss may be roughly the same (OK, there may be differences), the judge will likely be aware that the tax loss number is large and hence that the potential restitution -- which the U.S. is not seeking -- could also be large (albeit net of collections from the taxpayers). In any event, presumably the judge will take the recommendations or not vary materially from them.