88 year old Textile merchant sues Citibank for S$20 million losses

[Mdm Tang]

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Singapore News









http://www.channelnewsasia.com/stories/singaporelocalnews/view/1144677/1/.html

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Textile merchant sues Citibank for losses


By Tanya Fong, TODAY | Posted: 03 August 2011 0622 hrs




Singapore's High Court










SINGAPORE:


An 88-year-old Indonesian textile merchant who had invested in shares and hedge funds has taken Citibank to court, claiming that the bank was negligent in its advice to him, causing him to lose US$17 million (S$20 million).

Mr Ie Seng Hoan, also known as Pak Ie, is accusing Citigroup's Singapore unit of negligent representation, negligence, undue influence and breach of statutory duty.

These allegations have been denied by Citibank.

In a strongly-worded opening statement in the High Court on Tuesday, Pak Ie's lawyer, Mr Koh Hai Keong, alleged that the bank knew of the Pak Ie's health problems, his lack of English literacy and "lack of financial acumen and education".

In addition, the bank "habitually" sent Pak Ie densely worded documents in English and that his "reliance and dependency were almost total" on the bank's relationship manager to inform him that his investments were safe and in good order.

The said relationship manager left for Merrill Lynch in April 2008 and the bank assigned Ms Loi Siew Keng to take over Pak Ie's investments with Citibank. These investments included engaging in leveraged foreign exchange transactions and investing in hedge funds.

Mr Koh alleged that in 2008, Pak Ie had given instructions to redeem his hedge funds in Arden Investments, FRM Diversified and the Gryphon Unit Trust where, by late June/July 2008 it would have been redeemed at US$16 million.

The monies would have been transferred to a designated account with Merrill Lynch and some of the monies to be used by Pak Ie for his personal purpose.

However, Pak Ie, who had made these investments through his private investment company Zhen Yin, claims that Citibank did not accept or follow these instructions.

Instead, it allegedly sought to persuade Pak Ie to, upon redemption of the money, to re-invest in three other hedge funds which the bank had "represented as being profitable".

Citibank, which is represented by Senior Counsel Hri Kumar from Drew & Napier, claims that Pak Ie had agreed to subscribe to the new hedge funds, tried to cancel the subscription but later retracted his decision to do so in writing.

The bank will submit evidence that Pak Ie maintained or maintains, accounts with UBS, DBS and Merrill Lynch, where he had confirmed that he is a "sophisticated investor", an "aggressive" risk taker, and was labelled by one bank as "wily trader".

It also refutes Pak Ie's allegation of "undue influence" as "hopelessly misconceived" and will seek to show that there was "no relationship of trust and confidence" between Pak Ie and Ms Loi.

In addition, the bank claims that Pak Ie had many opportunities to voice complaints to the bank's officers in the presence of his family members but never did so.

The bank contends the allegation of undue influence by Pak Ie is "plainly a desperate attempt to avoid the consequences of decisions" he had "fully and freely agreed to".

The trial before Justice Philip Pillai continues on Wednesday. - TODAY





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[Mdm Tang]

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'Frail victim' is a wily trader, claims Citi
[2011] 03 Aug_BT

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Title: 'Frail victim' is a wily trader, claims Citi Source: Business Times
Author: Grace Leong



Legal News Archive


(SINGAPORE) Citigroup Singapore, which was accused of giving negligent advice that cost an Indonesian textile businessman US$16.56 million (S$19.9 million) in investment losses, says he is not as his lawyers portray, a 'frail and defenceless victim with limited knowledge of financial matters.'

Instead, 88 year-old Ie Seng Hoan alias Ie Siang Hoan has 'extensive experience' in a wide range of investment products, and is described by other investment banks as a 'wily trader,' Citigroup said in opening statements at a High Court trial that began on Monday.

'Discovery (which the plaintiff resisted) revealed that in Singapore alone, Ie maintained or maintains, in his own name, or with or through others, accounts with UBS AG, DBS Bank and Merrill Lynch International Bank Ltd, where he has made investment bets running into millions,' the bank said.

'In these accounts, Ie confirmed that he is a 'sophisticated investor' and an 'aggressive' risktaker. UBS even labelled Ie a 'wily trader',' Citigroup said.

Mr Ie accused Citigroup and his relationship manager, Ms Loi Siew Keng, of negligent misrepresentations and hiding material facts and claimed the bank had 'undue influence' on his investment decisions.

'It knew full well of Pak Ie's health problems, his language difficulties and his lack of financial acumen and education,' Mr Ie's lawyer Koh Hai Keong said in his opening statement at trial.

But Citigroup's lawyers, SC Hri Kumar and Tham Feei Sy of Drew & Napier LLC, said Mr Ie's claims were typical of numerous unhappy investors who sued financial institutions for losses they suffered in the wake of the global financial meltdown in the second half of 2008.

'In their bid to gain sympathy of the courts and the public, sophisticated investors painted themselves as inexperienced, uneducated laypeople who did not understand the products they purchased, the agreements they executed, or the statements they were sent,' the bank said.

'They say they relied entirely on the recommendations or advice given by financial institutions, and that such advice must have been fraudulent or negligent if they suffered losses,' the bank said.

Starting Jan 1 next year, the Monetary Authority of Singapore will introduce new requirements for financial institutions to formally assess retail customers' investment knowledge and experience before selling them certain products.

According to Citibank's opening statement, Mr Ie and his private investment firm, Zhen Yin Co Ltd, from January 2006 through September 2008, entered into at least 63 high-risk investments known as currency accumulators with Citigroup, and even made profits on some of them.

But in October 2008, when stock and currency markets turned volatile due to the global financial crisis, Mr Ie was forced to unwind two accumulators because the accounts were in margin call status due to losses in the value of the collateral pledged. Because Mr Ie was unable to deposit further funds to address the margin shortfall, he was forced to incur unwinding costs totalling ????pounds;8.3 million (S$16.3 million).

In addition to the unwinding costs, Mr Ie also claimed he incurred US$2.02 million in losses because Citigroup failed to carry out his instructions to cancel three hedge funds, and another US$1.09 million in losses from the alleged delayed redemption of another hedge fund.

But Citigroup disagreed. 'The plaintiff has singled out the 25 July accumulator and the September accumulator transactions because it lost money on those transactions,' the bank said.

Further, the bank said the three hedge funds weren't cancelled because Mr Ie had retracted his instructions to cancel.

Godwin Chellam, a Hong Kong-based spokesman of Citigroup, disputed Mr Ie's claims.

'We have acted professionally in managing the accounts of Zhen Yin and Mr Ie at all times. The litigation is wholly without merit and we will defend it vigorously in court,' he said.

 

[Devil Within]

Anyone who think that Banks are your friend will be woefully mistaken.

Banks are there to take your money! When you put money in the banks, they use your money to invest and make more money for themselves from your deposits but give you miserable interest for all the money they make using your money!

They give you credit but go down heavy on you by charging you exorbitant interest rate on your loans and when you fail to make repayment on time, they sent their lawyers and bring you to court.

Anyone who think that the banks are there to help you to make money by giving you their advice on "investment" are bound to lose money. They will make the money first, then sell the "investment" to you and make the money from your purchase.

 

[Meltdown]

The Jews who control Wall Street, the City of London, the money centre banks, the global central banking system, and the global fiat monetary system always win.

The wealth and power of the Indo Chinese textile merchant is nothing compared to the Jews.

The wealth, power, influence, and financial intelligence of the business tycoons in Asia like Li Ka-shing, Ng Teng Fong's family, Robert Kuok, etc... are nothing compared to the Jews. The Asian tycoons are Nouveau Riche and unintelligent and are subject to being manipulated by the Jews. Look at the $20 million loss of the Indo Chinese textile merchant at Citibank. Another example is tycoon Oei Hong Leong who lost $1 billion at Citibank.

The Jews have been indirectly ruling the world for hundreds of years. They rule over the Lee Family and control the MAS.

I expect many Asian tycoons to lose their vast fortunes in the coming 2nd Great Depression. No kidding.

In the end, the Jews always win!

God Bless Israel & The Jewish People!

<iframe width="425" height="349" src="http://www.youtube.com/embed/NZ10DZHy5Ko" frameborder="0" allowfullscreen></iframe>

 

[Narong Wongwan]

The Jews who control Wall Street, the City of London, the money centre banks, the global central banking system, and the global fiat monetary system always win.

The wealth and power of the Indo Chinese textile merchant is nothing compared to the Jews.

The wealth, power, influence, and financial intelligence of the business tycoons in Asia like Li Ka-shing, Ng Teng Fong's family, Robert Kuok, etc... are nothing compared to the Jews. The Asian tycoons are Nouveau Riche and unintelligent and are subject to being manipulated by the Jews. Look at the $20 million loss of the Indo Chinese textile merchant at Citibank. Another example is tycoon Oei Hong Leong who lost $1 billion at Citibank.

The Jews have been indirectly ruling the world for hundreds of years. They rule over the Lee Family and control the MAS.

I expect many Asian tycoons to lose their vast fortunes in the coming 2nd Great Depression. No kidding.

In the end, the Jews always win!

God Bless Israel & The Jewish People!

<iframe width="425" height="349" src="http://www.youtube.com/embed/NZ10DZHy5Ko" frameborder="0" allowfullscreen></iframe>

I buy your story....how can I convert to be a Jew?

 

[Qantas]

I buy your story....how can I convert to be a Jew?

I think must potong and go pray at the wailing wall.