Hanspeter Brunner, former Asia chief of BSI SA – which is in trouble over dealings with 1MDB — has settled a lawsuit seeking deferred payments.
According to a Bloomberg report, Brunner’s lawsuit alleged that BSI’s Singapore unit breached bonus agreements and a separation pact without any legal basis.
Brunner, 64, was among six BSI bankers referred by Singapore’s central bank to prosecutors over lapses in dealing with 1Malaysia Development Bhd, said the report.
He is also one of two former BSI executives the Swiss financial regulator has started proceedings against. Brunner’s retirement was announced in March.
“Hanspeter Brunner has withdrawn his claim against the bank in its entirety,” Muralli Rajaram, a Singapore-based lawyer for BSI, was quoted as saying by Bloomberg.
“The bank is pleased that good sense has prevailed and is happy with the outcome.”
Bloomberg said Brunner’s lawyer Ng Lip Chih declined to comment and that the details of the settlement were not disclosed.
BSI is in deep trouble over its dealings with 1MDB. Its Singapore unit was ordered closed by the Monetary Authority of Singapore and it is facing action in Switzerland.
1MDB is at the centre of multiple international probes into suspected money laundering and embezzlement. The US Department of Justice recently filed civil forfeiture suits against individuals and firms which it said had profited from money stolen from 1MDB.
1MDB, however, has not reported that any of its money has been stolen or misappropriated.
1MDB has consistently denied wrongdoing.