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In HK, we are finally begining to see the first of the criminal cases of bank officers being charged in court for fraud over minibond investments. To earn lucrative comissions, these officers misrepresented the risk of the instruments and caused some of the victims to lose their life savings.
HK has taken a no nonsense approach to the issue. The banks who sold these products were made to repay investors a larger propotion of the loss. The bank officers who sold the products under false pretences to earn comission will be jailed and fined.
In Singapore, SPF will not look into your case even if you make a report. This applies even for other scams like land banking, wine investments etc. if you make a police report, the officer will do their best to tai-chi it away as a personal dispute and ask you to hire your own lawyer.
The lack of enforcement in Sinagpore makes Singapore a ripe environment for con artists and scams. It is very easy to laugh at the stupidity of others who have fallen victim and lost a large sum of money. You will however not be laughing if you or your family is the victim and there is no one to help you.
Bank officer charged over minibond investments
http://www.lbv.org.hk/content/pages/posts/bank-officer-charged-over-minibond-investments10555.php
A bank customer service officer appeared in Eastern Court yesterday accused of inducing five customers to invest HK$1.26 million in Lehman Brothers' minibonds.
Chan Lai-ha, 51, did not enter pleas to five charges of fraudulently or recklessly inducing others to invest money. The case is adjourned to December 1 for transfer proceedings to the District Court.
The minibonds, issued or guaranteed by the US bank which collapsed in September 2008, are a type of high-risk, credit-linked derivative - a financial instrument that derives its value from an underlying security.
On March 17, 2004, Chan allegedly induced Stephen Wong Man-ka to invest US$50,000 in Minibonds Series 9 by claiming that he would not suffer any loss of the principal amount, and that the investment did not carry any economic risk of loss. By making similar claims, she allegedly induced Ip Man-ye and Leung Chu-pang to invest HK$200,000 in Minibonds Series 15 on December 28, 2004.
On March 9, 2005, and December 1, 2007, she allegedly induced Ip to invest US$10,000, and Huyhn Tu-chau to invest HK$400,000.
The fifth charge alleges that Chan, on February 1, 2006, induced Li Ruilan to invest HK$200,000 in Minibonds Series 35, by claiming that the issuers of the product were the following - HSBC Bank, Hutchison Whampoa, the MTR Corporation, the People's Republic of China, Standard Chartered Bank, Sun Hung Kai Properties and Swire Pacific.
Chan is also accused of telling Li that in the unlikely event of a credit event occurring, she would only suffer a loss of a portion of the principal invested. Each offence carries a maximum penalty of HK$1 million in fine and seven years in jail.
Copyright (c) 2010. South China Morning Post Publishers Ltd. All rights reserved.
HK has taken a no nonsense approach to the issue. The banks who sold these products were made to repay investors a larger propotion of the loss. The bank officers who sold the products under false pretences to earn comission will be jailed and fined.
In Singapore, SPF will not look into your case even if you make a report. This applies even for other scams like land banking, wine investments etc. if you make a police report, the officer will do their best to tai-chi it away as a personal dispute and ask you to hire your own lawyer.
The lack of enforcement in Sinagpore makes Singapore a ripe environment for con artists and scams. It is very easy to laugh at the stupidity of others who have fallen victim and lost a large sum of money. You will however not be laughing if you or your family is the victim and there is no one to help you.
Bank officer charged over minibond investments
http://www.lbv.org.hk/content/pages/posts/bank-officer-charged-over-minibond-investments10555.php
A bank customer service officer appeared in Eastern Court yesterday accused of inducing five customers to invest HK$1.26 million in Lehman Brothers' minibonds.
Chan Lai-ha, 51, did not enter pleas to five charges of fraudulently or recklessly inducing others to invest money. The case is adjourned to December 1 for transfer proceedings to the District Court.
The minibonds, issued or guaranteed by the US bank which collapsed in September 2008, are a type of high-risk, credit-linked derivative - a financial instrument that derives its value from an underlying security.
On March 17, 2004, Chan allegedly induced Stephen Wong Man-ka to invest US$50,000 in Minibonds Series 9 by claiming that he would not suffer any loss of the principal amount, and that the investment did not carry any economic risk of loss. By making similar claims, she allegedly induced Ip Man-ye and Leung Chu-pang to invest HK$200,000 in Minibonds Series 15 on December 28, 2004.
On March 9, 2005, and December 1, 2007, she allegedly induced Ip to invest US$10,000, and Huyhn Tu-chau to invest HK$400,000.
The fifth charge alleges that Chan, on February 1, 2006, induced Li Ruilan to invest HK$200,000 in Minibonds Series 35, by claiming that the issuers of the product were the following - HSBC Bank, Hutchison Whampoa, the MTR Corporation, the People's Republic of China, Standard Chartered Bank, Sun Hung Kai Properties and Swire Pacific.
Chan is also accused of telling Li that in the unlikely event of a credit event occurring, she would only suffer a loss of a portion of the principal invested. Each offence carries a maximum penalty of HK$1 million in fine and seven years in jail.
Copyright (c) 2010. South China Morning Post Publishers Ltd. All rights reserved.
