Lau Wai-lan, 45, is suing the bank for misrepresentation, unconscionable conduct and negligent investment advice. She is being assisted by the Democratic Party.
Lau is a single mother of three. She received secondary education but suffered a chronic brain injury in 1994 and has not been able to work since. Her sister, Lau Wai-ping, said Lau has been under immense mental stress since the failure of Lehman Brothers.
She has twice attempted suicide and is now on a regime of tranquilizers.
"We sent a few letters to the bank and the Securities and Futures Commission in October, but we received no assistance. This is our last resort," Lau Wai-ping said.
In 1995, Lau Wai-lan divorced her husband and sold her assets for HK$6.2 million. She put the money in a Bank of China fixed-time deposit and used the interest to support her three children, who are now aged eight, nine and 15.
On January 6, 2006, Lau claimed she was persuaded by a staff member she had known for several years to put HK$3 million into a 4 percent fixed-term deposit account at the Tai Wai branch of the bank.
But two weeks later, Lau broke the deposit to invest in the minibond series 23 HKD fixed- rate callable credit-linked notes due 2011 after being allegedly assured the investment was "low risk" and "safer than a bank deposit with triple A guarantee." Lau was also guaranteed a 5.1 percent interest rate.
On August 16, she transferred another HK$3 million in savings from her Citibank account and invested in minibond series 27.
Lau Wai-ping insisted her sister always reminded staff of her physical status and asked them not to introduce her to high-risk products.
In the writ, Lau maintained she was never told she might not obtain any refund of the principal at the end of the investment period. She was also not informed of any commission or financial interests involved.
The writ said the bank should perform a duty of care towards Lau, as well as provide proper advice and assistance. Lau was also rendered unable to make informed decisions as to what was in her own best interests.
http://www.thestandard.com.hk/news_detail.asp?pp_cat=11&art_id=79125&sid=22979423&con_type=1
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