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Bloomberg
Societe Generale Accused of Wrong Currency Bets, Fraud in Singapore Suit
By Andrea Tan - Oct 13, 2010 11:16 AM GMT+0800
Two Societe Generale SA Singapore private bankers, making wrong bets on currency values, almost wiped out a client’s $10 million account and for years attempted to hide the losses, the investor claims in a lawsuit.
Chan Leong Cheng, a resident of Perth, Western Australia, yesterday sued Societe Generale’s Singapore private bank and the two executives in Singapore’s High Court in a bid to recover $8 million of the losses.
“The defendants’ management of the assets in the account created massive losses,” Chan said in court papers. The bankers “made fraudulent representations to the plaintiff for a long period of time.”
Societe Generale, France’s second-biggest bank, suspended Jenny Liew Marn Leng, an executive director, and her direct supervisor Lilian Ang, after the losses were discovered, Chan said in the court papers.
Both bankers had assured Chan for several years the balance in the account was about $8 million and provided statements reflecting that, even though the account had been almost depleted, Chan said.
Vanessa Lee, a Singapore-based spokeswoman at Societe Generale, couldn’t immediately comment on the lawsuit. Liew and Ang’s lawyers from Manjit Govind & Partners couldn’t immediately be reached for comment.
Liew confessed that the actual value of the investment account was about $260,000 on May 11, Chan said in the court papers.
Children’s Reserves
She “was aware that the funds in the account were meant as reserves for the plaintiff’s children,” according to the lawsuit. “She was sorry for her actions and felt extremely bad.”
Liew suggested Chan recover his losses by buying insurance, according to the lawsuit.
Ang told Chan on May 12 that she found out about Liew’s conduct at the beginning of the year and instead of informing him made further trades “in a vain attempt to recoup the massive losses,” according to the lawsuit.
Chan is seeking $7.9 million, the difference between $8.2 million the bankers claimed was in the account on March 3 and the actual holdings of $287,550 in cash and stocks.
The case is Chan Leong Cheng vs. Societe Generale Bank & Trust Singapore Branch, Liew Marn Leng Jenny and Lilian Ang, S780/2010 in the Singapore High Court.
http://www.bloomberg.com/news/2010-...ed-of-hiding-currency-loss-in-fraud-suit.html
Societe Generale Accused of Wrong Currency Bets, Fraud in Singapore Suit
By Andrea Tan - Oct 13, 2010 11:16 AM GMT+0800
Two Societe Generale SA Singapore private bankers, making wrong bets on currency values, almost wiped out a client’s $10 million account and for years attempted to hide the losses, the investor claims in a lawsuit.
Chan Leong Cheng, a resident of Perth, Western Australia, yesterday sued Societe Generale’s Singapore private bank and the two executives in Singapore’s High Court in a bid to recover $8 million of the losses.
“The defendants’ management of the assets in the account created massive losses,” Chan said in court papers. The bankers “made fraudulent representations to the plaintiff for a long period of time.”
Societe Generale, France’s second-biggest bank, suspended Jenny Liew Marn Leng, an executive director, and her direct supervisor Lilian Ang, after the losses were discovered, Chan said in the court papers.
Both bankers had assured Chan for several years the balance in the account was about $8 million and provided statements reflecting that, even though the account had been almost depleted, Chan said.
Vanessa Lee, a Singapore-based spokeswoman at Societe Generale, couldn’t immediately comment on the lawsuit. Liew and Ang’s lawyers from Manjit Govind & Partners couldn’t immediately be reached for comment.
Liew confessed that the actual value of the investment account was about $260,000 on May 11, Chan said in the court papers.
Children’s Reserves
She “was aware that the funds in the account were meant as reserves for the plaintiff’s children,” according to the lawsuit. “She was sorry for her actions and felt extremely bad.”
Liew suggested Chan recover his losses by buying insurance, according to the lawsuit.
Ang told Chan on May 12 that she found out about Liew’s conduct at the beginning of the year and instead of informing him made further trades “in a vain attempt to recoup the massive losses,” according to the lawsuit.
Chan is seeking $7.9 million, the difference between $8.2 million the bankers claimed was in the account on March 3 and the actual holdings of $287,550 in cash and stocks.
The case is Chan Leong Cheng vs. Societe Generale Bank & Trust Singapore Branch, Liew Marn Leng Jenny and Lilian Ang, S780/2010 in the Singapore High Court.
http://www.bloomberg.com/news/2010-...ed-of-hiding-currency-loss-in-fraud-suit.html
