Thursday, December 04, 2008

SCMP:Illiterate minibond investor files writ

http://www.pressdisplay.com/pressdisplay/showlink.aspx?bookmarkid=GBJR3WVK97T5&linkid=c62f11e3-4682-4992-b33c-9bc37feea64e&pdaffid=8HM4kDzWViwfc7AqkYlqIQ%3d%3d

4 Dec 2008
Yvonne Tsui, Eva Wu and Dennis Eng

A fisherman is suing the Bank of China for the return of HK$800,000 he invested with Lehman Brothers, alleging he was deceived because he is illiterate.

Lai Kam-fook, who filed a writ in the District Court on Tuesday, is taking legal action after he was told in September that his money was affected by the collapse of the American bank.

The writ alleges he and his wife were advised by a staff member at the bank’s Aberdeen branch in August 2004 to make a risk-free, five-year deposit with a higher interest rate. It says he had deposited HK$800,000.

It alleges Mr Lai had never received or read any documentation from the bank.

“Because the staff member, surnamed Leung, told me it was a fiveyear deposit, I believed her. I did not read anything. It is useless to have read anything because I am illiterate anyway,” Mr Lai stated in the writ.

“To conclude, the total sum I had invested is HK$800,000. My allegation is: the bank cheated me because I am illiterate.”

However, HSBC Hong Kong received a cease-and-desist order last week from Weil, Gotshal & Manges, Lehman’s bankruptcy counsel. This notice means the minibonds cannot be liquidated, which would be necessary to go ahead with a buy-back. Democrat Kam Nai-wai, however, said the best option remained the banks buying back the bonds.

As an alternative, six lawmakers suggested that a redemption fund of HK$20 billion, including HK$10 billion from the government, be established.

However, the Secretary for Financial Services and the Treasury, Chan Ka-keung, said public funds should not be used to compensate investors’ losses.

Minibonds are not corporate bonds, but consist of high-risk, credit-linked derivatives that were marketed as proxy investments in well-known companies.

7 comments:

Anonymous said...

Some years back, there was also a case of an old illiterate woman in Hong Kong who through a court order stopped the en-bloc of a big estate by a big developer.

Anyone know of such cases in Singapore?

Unknown said...

"A fisherman is suing the Bank of China for the return of HK$800,000 he invested with Lehman Brothers, alleging he was deceived because he is illiterate..."

"It alleges Mr Lai had never received or read any documentation from the bank..."

“...I did not read anything. It is useless to have read anything because I am illiterate anyway..”

“To conclude, the total sum I had invested is HK$800,000. My allegation is: the bank cheated me because I am illiterate.”

"However, HSBC Hong Kong received a cease-and-desist order last week from Weil, Gotshal & Manges, Lehman’s bankruptcy counsel. This notice means the minibonds cannot be liquidated, which would be necessary to go ahead with a buy-back... "

"As an alternative, six lawmakers suggested that a redemption fund of HK$20 billion, including HK$10 billion from the government, be established..."

"However, the Secretary for Financial Services and the Treasury, Chan Ka-keung, said public funds should not be used to compensate investors’ losses..."


Honestly speaking, I am confused who is more evil

Unknown said...

how come all the nice stories heard of happened EVERYWHERE except here

hmm..

Anonymous said...

The con job started from 2004.Lucky i told my dad to withdrew in 2006..
The entire industry reputation is now ROCKy and smelly.
They just target the old, innocent and illiterate.

SUSPEND the bank license for selling toxic Min bond. unless they compensate.

Skyhocs007 said...

I may sound selfish and heartless but I agree with the Hongkong Secretary for Financial Services that that, "...public funds should not be used to compensate investors' losses..."

Public funds are made up money that the citizens pay to the Government in the form of direct and indirect taxes as well as from commercial transactions between peoples and governments and including wealth generated by the Government from their prudent management of the nation's financial resources. As such 'public funds' being money thaat belongs to the people should only be used for the general good of the people and the country.

People who incur losses as a result of their private dealings with private financial institutions will have to seek recourse from other quarters to help redress their grievances however justified their grievances may be. If citizens have lost money which they have deposited as savings or even investment with Government institutions or government linked institutions as a result of mal-practice, negligence or incompetence on the part of officials handling such dealings or transactions on behalf of the government, then perhaps the unfortunate clients might have a good case to present to the relevant authorities in seeking compensation or redress for their financial misfortune.

Ho Cheow Seng

Unknown said...

This MIGHT be worth a listen

Even if its on the top of the front page

http://www.mrbrownshow.com/2008/12/01/the-mrbrown-show-town-council-investment-bank-of-singapore/

For those having difficulty, try downloading the MP3 and playout directly

pisces said...

【明報專訊】 迷債事主擬告美匯豐

曾助安然事主索回561億 美律師行來港商集體訴訟 2008年12月5日


【明報專訊】正當特區政府與雷曼迷債分銷銀行就回購安排的法律觀點爭持不下之際,事件突然有重要發展。本報記者獲悉,曾經協助美國安然集團股東向相關金融機構取回多達72億美元(約561億港元)賠償的一群美國律師,正準備代表香港迷債事主在美國以集體訴訟的方式入稟美國法院,向身為迷債信託人的美國匯豐銀行提出巨額索償,理據是美國匯豐「沒有忠實地履行作為一個信託人的應有責任」。

民主黨立法會議員涂謹申昨日只允證實正與一批美國律師商討類似行動,但拒絕透露進一步詳情。

涂謹申雖沒有透露該批美國律師的名字,但本報記者翻查資料,發現一家名為Coughlin Stoia的美國律師行,曾於2002年4月代表安然股東,以集體訴訟方式,入稟美國法院,控告安然集團曾經僱用的一大批投資銀行、會計師、董事和曾借錢給安然的銀行,指他們曾經直接或間接地協助安然欺騙股東,導致安然要清盤。結果在其後的6年裏,該律師行為安然股東追回72億美元的巨額賠償,並從中得到了6.88億美元律師費,創下了全球最高律師費的紀錄。

指控「沒忠實履行信託人責任」

消息人士昨日透露,曾積極參與安然集體訴訟案的一批美國律師,近月主動接觸正協助數千名雷曼事主索償的民主黨,希望民主黨能提供一些事主的資料給他們,以便他們可以代表這批事主在美國採取集體訴訟行動,控告身為28隻雷曼迷債系列信託人的美國匯豐銀行,理據是後者沒有依足迷債章程,「忠實地履行作為一個信託人的應有責任」,令債券持有人變相持有一些「有毒」的資產。

與民主黨商討 稱已夠法律依據

消息人士續稱,該批律師與民主黨的商討已進入十分仔細的階段,包括已談到一旦勝訴如何分配賠償的細節,並且聲言已找到足夠的法律依據控告美國匯豐。由於美國打官司的成本很高,以致很多美國的集體訴訟案件在排期階段已達成和解,因此有關的律師正以此作為他們行動的其中一個目標。

大聯盟月中號召大型示威

另一方面,「銀行苦主大聯盟」召集人陳光譽表示,昨晚雷曼事主緊急開會下了兩個決定,一是12月中會號召大型示威,希望規模是有史以來最大的;二是他們亦打算到美國控告銀行,目前正試圖找出數個有代表性的個案,主要是購買了迷你債券的事主,「因迷債相對簡單,之後再推廣到其他產品」。他希望12月中前能明確選出合適事主,屆時會再有公布。他亦指出,明白集體訴訟所需的金錢和時間不菲,會由一批事主共同負擔。

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