In an exclusive interview with Abu Dhabi Times, Dr. Gerhard Podovsovnik, Vice President of AEA Justinian Lawyers, explains how newly surfaced evidence on Swiss banks concealing Nazi-era assets could reshape legal strategy in the United States — and why this development directly impacts investors across the Gulf. His analysis follows revelations by Eric Frey in Der Standard (link), Riva Pomerantz in Ami Magazine (link), and Peter Hell in BILD (link), which exposed long-hidden accounts linked to Nazi-era transactions and Jewish victims’ assets. Dr. Podovsovnik argues that these findings create legal grounds to reopen the Korman Settlement in U.S. courts for fraud on the court — a move that could have sweeping consequences for UBS and its Gulf clients.
Abu Dhabi Times: Dr. Podovsovnik, recent revelations from Switzerland suggest that Credit Suisse kept thousands of files with Nazi-era connections hidden for decades. Why is this relevant for your current cases in the United States and the Gulf region?
Dr. Podovsovnik: It is extremely relevant. What we now see — thousands of boxes and tens of thousands of microfilms containing unexplored records — proves that Swiss banks never completed the historical clean-up they promised. For our U.S. litigation strategy, this discovery creates a major opportunity. If one major Swiss bank withheld key documents, it becomes entirely credible that others, including UBS, did the same.
But this is not just a historical or American issue. It is directly relevant for the Middle East. Over the past two decades, sovereign wealth funds, royal-court structures, and family offices from Abu Dhabi, Dubai, Qatar, and Saudi Arabia have placed multi-billion-dollar assets with UBS. These investors rightly expect full transparency, accurate reporting, and sound compliance. The revelation that hidden archives still exist is alarming. It suggests that undisclosed liabilities or off-balance exposures may persist — a matter of serious concern for Gulf investors with substantial holdings at UBS.
Abu Dhabi Times: You argue that UBS has “opened the door” for litigation in the U.S. What exactly did UBS do?
Dr. Podovsovnik: UBS’s lawyers have repeatedly claimed that all Nazi-era accounts were fully settled under the Korman Settlement. That assertion is incorrect. The newly uncovered Credit Suisse archives — and the documented history of the Basler Handelsbank, later absorbed by UBS — prove that many accounts were excluded from the settlement.
By asserting a false position, UBS inadvertently created a new legal basis in the U.S. for fraud on the court. This allows U.S. courts to reopen the case, order full discovery, demand archive access, subpoena UBS executives, and unseal both historical and contemporary balance records. Misleading statements to a U.S. court are taken extremely seriously. For Gulf investors, the implications are clear: any legal instability at UBS, particularly under U.S. jurisdiction, directly affects the security and credibility of their wealth management relationships.
Abu Dhabi Times: You have mentioned the Basler Handelsbank several times. What role does it play in this case?
Dr. Podovsovnik: The Bergier Report documented that the Basler Handelsbank maintained extensive financial relationships with Nazi Germany. When UBS absorbed the Basler Handelsbank after the war, it inherited not only assets but also archives, dormant accounts, and potential legal liabilities.
We insist that UBS and Basler Handelsbank archives be made available to qualified international experts. The refusal to permit access raises the suspicion that crucial records are being withheld. For Middle Eastern investors, this leads to an uncomfortable but necessary question: If UBS can conceal historical accounts for over eighty years, could it also conceal modern exposures, risks, or off-balance activities?
This concern is especially relevant for institutions operating under the Dubai International Financial Centre (DIFC) and the Abu Dhabi Global Market (ADGM), both of which are home to investors who rely on UBS for asset management and private banking.
Abu Dhabi Times: You refer to “fraud on the court” as a key element in your legal approach. How does this doctrine apply, and why is it so important for Gulf investors?
Dr. Podovsovnik: Fraud on the court is one of the most powerful remedies in U.S. law. It applies when a party misleads the court or conceals material facts that could alter the outcome of a case. If UBS knowingly told U.S. judges that all Nazi-era accounts were settled while holding archives that prove otherwise, the entire settlement can be reopened.
This would lead to comprehensive document disclosure, the unsealing of account registries, forensic tracing of off-balance assets, and even court-supervised inspections of UBS archives. It could also trigger severe financial sanctions.
For Gulf investors, the impact extends beyond history. Once U.S. discovery begins, it will expose UBS’s internal compliance, risk management structures, and any concealed liabilities. Transparency is not optional — it is the foundation of trust for investors who have placed billions under UBS’s stewardship.
Abu Dhabi Times: What is your message to investors, families, foundations, and sovereign entities from the Gulf region who maintain major accounts with UBS?
Dr. Podovsovnik: My message is straightforward and responsible: Demand transparency now — before the U.S. courts force UBS to provide it.
Gulf investors, particularly sovereign and family-office clients, possess immense influence. They are entitled to insist that UBS disclose its archival holdings, confirm that no historical risks remain off-balance, guarantee that dormant claims do not threaten solvency, and ensure that no unreported assets overlap with Gulf portfolios.
If UBS concealed Nazi-era accounts for eighty years, that raises serious doubts about what else might remain undisclosed. Investors from Abu Dhabi, Dubai, Qatar, Saudi Arabia, and Kuwait have both the leverage and the obligation to demand full transparency now — while they still control the conversation.
Dr. Podovsovnik (Closing Statement): The Credit Suisse revelations are not confined to the past. They reach directly into UBS’s present, affecting every investor who depends on Swiss banking integrity. If archives remain sealed, it signals fear — not confidence.
In the United States, such concealment justifies reopening the Korman Settlement. In the Gulf, it justifies immediate and decisive action. Transparency and trust are not historical luxuries; they are living principles that define the credibility of global finance today. For Gulf investors, the message is unmistakable: history may sleep in archives, but accountability never does.
