2 BOC HK unit staff face fraud charges
Source: Agencies |
April 13, 2010, Tuesday
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Print Edition
Print Edition
TWO employees of the Bank of China Ltd's Hong Kong subsidiary have been charged in connection with sales of financial products linked to collapsed Lehman Brothers Holdings Inc, the Beijing-based bank announced yesterday.
Thousands of small Hong Kong investors complain they were misled about products linked to Lehman and were left in limbo when the Wall Street bank collapsed in 2008.
The two employees of the subsidiary were charged under Hong Kong securities laws, BOC said in a statement. It said a third employee was arrested on March 26 but has not been charged. The bank said it would cooperate with investigators.
The statement gave no other details but police said earlier that two employees of an unidentified Hong Kong bank were arrested on March 26 on suspicion of fraud after being accused of persuading eight customers to invest in derivatives backed by Lehman between 2005 and 2008 to the tune of US$3.5 million.
Some 30,000 small investors bought US$1.8 billion in Lehman-linked derivatives in Hong Kong before the bank's collapse. Investors complained they were not fully informed of the risks of the complex derivatives, which were innocuously labeled "mini-bonds."
Hong Kong regulators announced a settlement with 16 local banks in July.
Thousands of small Hong Kong investors complain they were misled about products linked to Lehman and were left in limbo when the Wall Street bank collapsed in 2008.
The two employees of the subsidiary were charged under Hong Kong securities laws, BOC said in a statement. It said a third employee was arrested on March 26 but has not been charged. The bank said it would cooperate with investigators.
The statement gave no other details but police said earlier that two employees of an unidentified Hong Kong bank were arrested on March 26 on suspicion of fraud after being accused of persuading eight customers to invest in derivatives backed by Lehman between 2005 and 2008 to the tune of US$3.5 million.
Some 30,000 small investors bought US$1.8 billion in Lehman-linked derivatives in Hong Kong before the bank's collapse. Investors complained they were not fully informed of the risks of the complex derivatives, which were innocuously labeled "mini-bonds."
Hong Kong regulators announced a settlement with 16 local banks in July.
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