Legal

UBS Beats Off Lawsuit Over Accounts Of Deceased Indonesian Statesman

Tom Burroughes, Group Editor, 26 January 2015

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The world’s largest wealth manager succeeded in dismissing a lawsuit in which it was accused of stealing billions of dollars from inactive accounts, including assets held by the late Indonesian statesman Adam Malik.

The world’s largest wealth manager succeeded in dismissing a lawsuit in which it was accused of stealing billions of dollars from inactive accounts, including assets held by the late Indonesian statesman Adam Malik, Reuters reported. Malik had also been president of the United National General Assembly.

This publication is in contact with UBS seeking comment on the matter.

The lawsuit had been filed in a California federal court in September last year. The suit claimed that the Zurich-listed bank had “fast-tracked” closure of inactive accounts to take assets for its own use.

UBS was quoted saying that the firm was pleased at the outcome of the legal proceedings.

The bank's lawyers in November urged dismissal of the Malik lawsuit, challenging the court's authority to hear cases against companies headquartered outside the US, the report said.

The report said Malik had about $5 million in currency and gold bullion at two UBS predecessor banks when he died in 1984, according to details of the lawsuit. Malik's estate made numerous efforts to recover the funds over the years, but was told no records were available.

The predecessor banks, Swiss Bank Corp and Union Bank of Switzerland, combined in 1998 to form UBS.

The lawsuit was filed by AM Trust, which represents the Swiss bank claims of Malik's estate, the news service's report added.

 

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