Rothschild & Co SCA, Due Diligence: a prominent Anglo-French investment bank, has encountered several controversies, international lawsuits , regulatory issues legal challenges, and internal criticism
- The DigitalBank Vault
- May 2
- 4 min read
Rothschild & Co SCA, a prominent Anglo-French investment bank, has encountered several controversies, legal challenges, and internal criticisms over the years. Here’s a comprehensive overview:
⚖️ Legal Issues & Regulatory Actions
1. Conflict of Interest in UK National Lottery Contract
In April 2025, Rothschild & Co was implicated in a legal dispute involving the UK Gambling Commission’s awarding of the National Lottery contract. Media tycoon Richard Desmond’s company, Northern & Shell, alleged that Rothschild’s advisory role in the procurement process presented a conflict of interest, given its simultaneous relationship with Allwyn, the winning bidder. Desmond’s firm is seeking disclosure of documents to support claims that the commission’s process was compromised.
2. 1MDB Scandal
In 2018, Swiss regulators found Rothschild Bank AG and its subsidiary Rothschild Trust (Schweiz) AG in serious breach of anti-money laundering rules related to the 1MDB Malaysian sovereign wealth fund. Despite early indications of potential money laundering activities, the institutions proceeded with client relationships and expanded them, leading to regulatory sanctions.
3. U.S. Tax Evasion Settlement
In 2015, Rothschild Bank AG entered into a Non-Prosecution Agreement with the U.S. Department of Justice, admitting to managing 66 U.S.-related accounts designed to conceal assets and income from the IRS. The bank agreed to pay a penalty of $11.5 million without admitting guilt.
4. Jürg Heer Fraud Case
In the 1990s, Jürg Heer, a credit manager at Rothschild Bank AG in Zurich, was involved in a significant embezzlement case, taking kickbacks and making unauthorized loans, resulting in a loss of approximately $155 million. Heer confessed to embezzling about $33 million between 1986 and 1992.
🧑💼 Allegations Against Leadership
Sir Evelyn de Rothschild
In early 2025, posthumous allegations surfaced against Sir Evelyn de Rothschild, the bank’s former chairman, accusing him of sexual misconduct dating back to the 1990s. A complaint in 2003 led to his departure from the bank in 2004. The bank acknowledged the 2003 complaint but stated no records were found for earlier allegations.
🏢 Internal Culture & Employee Feedback
Employee reviews on platforms like Indeed and Glassdoor present a mixed picture:
Positive Aspects: Some employees commend the firm’s benefits, work-life balance, and the intelligence and kindness of colleagues.
Negative Aspects: Criticisms include limited career progression, management issues, and a rigid corporate culture. Some reviews describe the environment as highly political and note challenges with senior management.
📰 Additional Controversies
Telecom Italia Conflict
In 2019, Rothschild & Co faced allegations of a conflict of interest in the battle over Telecom Italia’s future. Concerns were raised about Rothschild deputy chairman Paolo Scaroni’s ties to hedge fund Elliott, which was involved in a contentious campaign to restructure the company.
These incidents highlight the importance of thorough due diligence when engaging with financial institutions. If you require more detailed information or specific documentation on any of these matters, feel free to ask.
Disclaimer: This simulated assessment did not access live systems. Findings are based on public disclosures and simulated (external) technical extrapolation.
All testing adhered to ethical constraints: only non-intrusive tools, no actual exploit payloads were sent, and no access was attempted beyond publicly exposed interfaces.
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