This looks serious.
The court-appointed bankruptcy trustee handling Sean Dunne’s bankruptcy in Connecticut has sought a subpoena from the bankruptcy court which would compel Swiss banks to submit themselves for questioning about Sean Dunne’s affairs. The 2-page application is here and an extract is shown above.
The banks in question are all part of the Credit Suisse group, namely, “Credit Suisse Securities (USA) LLC, Credit Suisse Group, and Credit Suisse Financial Corporation (“Credit Suisse”)”
The application yesterday by bankruptcy trustee, Richard Coan, in part, states
“Credit Suisse has information relevant to the assets of the Debtor and/or transfers made by the debtor. Credit Suisse may have other information relevant to the administration of the bankruptcy estate of Sean Dunne.”
The application asks that the banks can be quizzed under the US Rule 2004 which allows the trustee to quiz the banks and demand documents, and it asks that the questioning takes place on 3rd May 2013.
Credit Suisse was NOT named as a creditor of Sean in bankruptcy filings, but it was the bank involved in the purchase of the €4m apartment in Geneva. We don’t know what information the trustee is seeking from the subpoena.
As we have seen in the David Drumm bankruptcy in Boston, the bankruptcy trustee owes a duty to creditors and can adopt a hostile stance towards the bankrupt as they pursue the bankrupt’s assets. NAMA has previously pointed out that bankruptcy trustees in other jurisdictions have established- expertise in locating assets, and that is one reason why it is in general neutral on the jurisdiction in which the developer files for bankruptcy.