Two Dubai Investors File $10 Million Lawsuit Against Standard Chartered

by San Antonio Attorney

Standard Chartered is being sued by two investors from Dubai whom are seeking $10 million in losses from investments linked to Madoff feeder funds that the bank allegedly misled them into buying.

The investors are filing the lawsuit against Standard Chartered because American Express Bank, which Standard Chartered acquired in 2008, had recommended the investment.

A big percentage of their AEB accounts in Singapore were invested in Fairfield Sentry. Fairfield Sentry invested 95 % of its funds with Madoff.

According to the allegations of the Dubai investors, AEB did not act with care and competency with regards to their investments.

Standard Chartered, which is denying accountability, said that the investors were knowledgeable about investments and they signed agreements indicating that the bank is not responsible for monitoring their assets and transactions.

The bank claims that even though it gave a recommendation or advice, it does not make them accountable for the reliability of such recommendation or advice.

The spokeswoman of Standard Chartered acknowledged that the complainants were AEB clients but she refused to give further information regarding the case.

Feeder funds collect funds from investors and funnel the money into bigger funds.

Presently, United States investors of Madoff are still trying to recover a portion of the money they invested in the firm. Bernard Madoff orchestrated the largest Ponzi scheme in history. He is serving a 150-year sentence, which is the maximum imprisonment, on several criminal charges for robbing investors of $65 billion.

A week ago, a federal bankruptcy judge declared that feeder funds of investors who lost their money are not qualified as clients of Madoff. For that reason, those investors will not get up to half a billion dollars each from a federal fund created to aid clients of brokerages that failed.

Several people every year become victims of securities theft.  If you have been affected in a similar way, and as a result need to file bankruptcy, it may be a good idea to contact a San Antonio Bankruptcy attorney for help.

 

Leave a Comment

Previous post:

Next post: