Deutsche Bank V Forex Billionaire
Vik had contended that he could not be served in the U.S. because he is rarely in the country and spends most of his time in Monaco. Deutsche Bank was therefore given an additional 120 days to serve the complaint to the couple.
The case stems from the bank’s allegations that Vik had stripped his Sebastian Holdings Inc. fund of all its assets, transferring approximately $1 billion to himself and other entities controlled by his immediate family. He did this after realizing that the fund had incurred hundreds of millions of dollars in losses in 2008 on trades placed in Forex markets, facing threatening margin calls from the bank.
According to Deutsche Bank, the fund then informed them that it did not have sufficient assets to pay its obligations to the bank.
Vik’s response was an $8 billion counterclaim, alleging that Deutsche made the margin calls in violation of several verbal contracts and that the bank should have stopped the trader who made the risky bets, causing billions of dollars of losses in the market.
The courts then rejected Vik’s counterclaim in November of 2013. Deutsche’s claim that Sebastian Holdings Inc. failed to pay a 2008 margin call was upheld. Vik was then ordered to pay the amount owed which was $243 million, plus costs, amounting to nearly $300 million.
A parallel suit against Vik and Sebastian Holdings is also proceeding in a Connecticut court after a judge in October denied motions for summary judgment filed by both Vik and Deutsche Bank.
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