High risk Octave Notes 15 sold by Bank of China

The sales of high risk Octave Notes 15

According to your letter dated 17 June 10 file 10-03052, your bank lied that the following informations were given to me but in fact none had received. So your bank has committed SECURITIES AND FUTURES ORDINANCE - SECT 107 Offence to fraudulently or recklessly induce others to invest money:

HKMA Joseph Yam had mentioned in Legco that Octave Notes are high risk products and these informaiton and documents were hidden from me during sales

1. The brochure was not given to me during the sale, and nothing were explained to me according to the rule of SFC ordinance and your bank and sales had lied about proper procedures were followed in your letter.

2. The sales had intetionationly not given even the photocopy of this brochure together with sales documents to me that I signed saying the photo copying machines were not working and hide away all the information after sales. And even when I asked for the copies few weeks later and also later this year, your bank refused to give me the documents until I gave the warning that I should inform HKMA. I got the evidence and cards of your staffs in Bank of China that involved this year.

3. Your bank had stoten the coupons belonging to me after sales, and the sales said that she was not responsible to send these coupons out but only the bank of China was responsible. In fact, I read in the news that Bank of China did give these coupons that should be belong to me to their staffs after sales of Octaves Notes to their staffs as the bonus. In fact, stealing is a criminal offense committed by Bank of China.

4. Your banks had not explained the sales documents risk level and hide these information from me during sales. So your bank's procedures are used for training your staffs to raudulently or recklessly induce others to invest money in non-bonds products while in facts your banks are telling your customers that these are bonds. Your banks also committed the crimes of SFC ordinance 107.


5. You had not explained the doubtful information listed on you sale document up to now and in your letter you stated that are nothing wrong there in and asked me to check with HKMA, does this mean you HKMA and SFC did look at your sales document. I believed this is false and this is a breach of Bank rules from HKMA.

6. You sales only showed me the photocopy of the brochure of Octave Notes and asked me to look at those corporations in large letters and stated that these were the bonds that I bought from Octave Notes and refused even to give the photocopy of the brochure for me look at the fine print without any explaination of the Notes involved and said this was equivalent to bonds (in Chinese). This is the right training your bank was given to your staffs in sales of these documents against rule of SFC and HKMA stated in you replied letter and your bank should be proper punished by SFC and HKMA as your totally neglect all the rules of HKMA of sales of these products as investigated nowsdays in Legco on Lehman Minibonds and related products even thru Octave Notes 15 is non-Lehman related products.


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Enclosed more evidence of Bank of China involvement in setting up bank frauds in sales high risk Octave Notes 15 as bonds.

For my purchase of Octave Notes 15 from Bank of China, the sale staff intentionally refused to give me sale documents on the same day, even thru I bought CNY bonds around three times before and every time Bank of China bank staffs gave the sales documents. This is against HKMA rule of sales of bonds and derivative products.

The sales staff asked me to check the price of Octave Notes in the monthly statement. And bank of China intentionally listed Octave Notes as bonds to commit the bank frauds, in fact Octave Notes are not bonds. Enclosed statement of 31/3/2008 for your information.

On this year 2010 I had gone three times for two weeks to request the sale documents and the bank staffs refused to give me the sale documents. Only for the last time that I told Bank of China bank managers that it is against rule of HKMA for I had meeting with HKMA before concerning Minibonds. Then the bank gave me the copy of the document. So Bank of China is intentionally breaking the bank rules of not giving the sales document to customers.

I never received any true document from Bank of China for Octave Notes 15 and even I talked to Bank of China staff in the complaint (file no. 10-03052) the Bank of China is saying there is nothing wrong to hide the sales document from me. So Bank of China is behind all the systematic bank frauds involved in hiding the sales documents together with their staffs to commit the crimes in their letter.

There are no informations given to me about CDOs involved with Octave Notes 15, no training document provided to me about how Bank of China trained their staffs to sale these notes, no informations were given to me about these CDOs involved, and the staff only told me that Octave Notes 15 are just bonds. So Bank of China is involved together with their staffs to hide these information from me and committed the bank frauds.

On the sale document, Bank of China added a line

Although I have been advised that I am suitable for investing in a lower or similar relative risk level fund comparable with my risk appetite, I still wish to invest in the above bonds and have decided to do so.

This line is unreasonable for sales of fund? and then applied to bonds? . Even in sales of low risk CNY bonds some staffs ticked this line and some didn't (evidence encolosed). So this should be a Bank of China senior management and directions evidence to show that these people intentionally trained their staffs to intentionally trick customers to buy high risks junk bonds CCC graded that were in fact non-existing in the HK market at that time. So Bank of China senior managements should be procecuted in these matters.