Oct 27, 2010
Investor fights bank
Scientist says he was misled, while bank claims he ignored advice
By Francis Chan, Companies Correspondent
Dr Chang Tse Wen, 62, founder of Houston-based pharmaceutical firm Tanox, made his name after his research led to the invention of Xolair, an asthma drug. -- ST PHOTO: SAMUEL HE
A LEADING Taiwanese scientist who saw a huge chunk of his new-found wealth vanish after he invested in complex financial products is suing Deutsche Bank in the Singapore High Court. Dr Chang Tse Wen claims he lost US$49 million (S$64 million) from his investments in 'accumulators'.
These are structured products that were once popular among investors, but have now become notorious after many people suffered losses from them during the global financial crisis.
The scientist is claiming he was an inexperienced investor and that the bank recommended him products that were not suitable for people with low-risk profiles like him. Dr Chang brought this suit against the bank after Deutsche sued him for an outstanding sum of about US$1.8 million from the failed investments.
However, the bank, represented by senior counsel Ang Cheng Hock of Allen & Gledhill, is arguing that Dr Chang suffered the hefty losses because of his 'own investment decisions'. The bank claims that Dr Chang was in fact a 'sophisticated man' who ignored the advice of his banker to diversify his investments.
