A never trained on private banking DBS manager stole investor from $90m on losses

RR-HKG@IMF.ORG, lli2@worldbank.org, 
publicaffairs@imf.org ,
 https://tts.sec.gov/oiea/QuestionsAndComments.html  ,  




Li Li / World Bank (China) , IMF (HK), IMF Chief Christine Lagarde (on private banking HK),
SEC (on DBS, Morgan Stanley law suit in US, HK, Singapore) , 

Martin Wheatley - Managing Director, Conduct Business Unit , FSA  (leftover of HKSFC)

DBS sues investor for $90m losses and the investor come back to reclaim her losses in court (Hong Kong Lehman Saga)

Tuesday, May 15, 2012

In 2007, Singapore based DBS bank hired a very young teller that very shortly became a sale manager of Citi Bank for stocks and foreign exchange with less than four years experience and was sent to China on his first day of work as private banker.

Without any training as private banker, he visited three clients from Citi bank in his first day of work in Shanghai and on the second day four clients from Citi bank in Beijing from order of DBS and one of them was Ms Hao Ting. Hao Ting is a wife of a owner of chemical factory and the untrained private banker  pretended that she is the owner and from his estimate the worth of the whole company they owned and he also added false personal data on the bank personal account with help from DBS bank. He then asked Hao Ting who is a medium risk investor that does not understand English and asked her to buy accumulator using a BVI company that was not opened  during that time. The investment adviser also went there to Beijing also and never explained the full risk of these accumulators to the clients which include during down period of stocks to buy for 257 days at may be 100X risk and spoke in Cantonese with clients in Beijing that understand little Cantonese. DBS never answered an question by the clients and kept on using telephone calls to trick clients to run their scam and to buy mostly their own customer make accumulator products as 'discounted stocks.

And on DBS lawyers defense, the lawyer pointed out that for medium risk investors, the clients can buy any stocks and trust funds without signing any risk form and this is common sense as most people in the world buy stocks. But after private banker such as DBS finished portfolio for their customers for medium risk. unlike UBS and other private bankers, DBS bank can call their clients on phones to ask them to buy three to four accumulators products as stocks!!! Since accumulators are very high risk products with lost two to three times the values of the products they sold, this logic is crazy and should be punished by HKMA by stopping all investment business of the DBS bank in HK,

This is a court caseHCA2279/08 of a Singapore bank with their government backing that never cares about private banking laws and uses Hong Kong ex-HKMA chief Joseph Yam non-control of HK banking system to try to rob China clients money and this need international attention of this pirate acts of Singapore private bank based in Hong Kong. Joseph Yam is found to be responsible for Lehman Minibonds Saga in HK and the reports will be issued by Legco later. But no investigations are under way on sales of very high risk accumulators in Hong Kong and this need to be look into by international bank regulators.






In fact, during these time I was also told by HK bank manager that HK banks could do any type of business as Swiss private banking and more to make Hong Kong the new financial center of the world in Asia and that manager also sold me Lehman Minibonds and now Legco is also investigating the bank laws during these periods.


DBS also issued Constellation Notes and was investigated by Legco members and HKMA and many frauds are found in the risk level of this products and three top managers are gone from DBS (HK) from secret document inside HKMA.


DBS bank had sent a English Risk form for Hao to sign after Hao was lured to bug accumulator, a very high risk product and later on demanded a mainland investor pay more than HK$90 million she allegedly owes the bank due to her investments in accumulators.It is the first accumulator- related case to be heard by the High Court here.



in 2009 Hao was arrested by police in Hong Kong on calls from DBS that pretended that she sent a threatening message to bank staff so she could not report her cases to HKMA and HKSFC for any investigation of any frauds of the Singapore base DBS bank.

DBS Bank (Hong Kong) had considered the defendant, Hao Ting, to be an experienced and successful business person from their newly hired private banker that in fact was a sales person from Citi bank, said lawyer Jat Sew- tong, representing DBS. And private bank rules need client advisor to advise their clients which DBS has ignored ever since they started their private banking system in Hong Kong. In fact Hao Ting is a median risk investor that like to buy stocks in her risk form from Citi Bank.

In July 2007, after signing eight accumulator contracts and forms as professional investor in English that Hao did not understand, Hao then was lured to put HK$80 million in DBS . And the lawyers denied that Client advisor in DBS ever advise Ms Hao while making 200 telephone calls in Hong Kong to their clients from China in few months as these telephone records in mainland are located by Ms Hao lawyers here.


Hao was not told of Accumulator risks until she had bought them for few time, and more and more details were given to her after each purchase, and upon inquiry of these matters, DBS told her that even if the stock market did fall as it happened in 1997, HK government would rush in the market to buy in the stocks to save the market, so she should not be afraid of the risk involved.  The only macro economical approach of HK government action in 1997 is understood by clients from China for they never know of HK government small government and micro-economical approach of HK government for years. Even now new CEO of HK C.Y.Leung is stlll keeping of using micro economical professors as his financial advisers against G20 countries of the world that should be noticed by World Bank.



A few months later, not only had Hao lost everything in her account due to the contracts but also incurred additional losses of HK$90 million, Jat claimed, and this was owed to DBS.


Seeking repayment from Hao, DBS Bank filed a lawsuit in Beijing in 2008 and lost. Hao is coming back to Hong Kong to sue the Singapore based DBS bank.

This court case shows that Singapore private bank can ignore International bank rules in Hong Kong and produce anti-private English banking rules to Chinese customers here that does not understand English and the DBS lawyers disregard HK laws that include SFC code 108 and HKMA private banking laws. Citibank also produced a high risk form signed by Hao Ting that certified to be true by Citibank but even the judge did not believe this special form that is burred is a true and only high risk document signed by Hao Ting. And HK police CCB never started to investigate her case on HK banks frauds and the police already said that they had stopped investigating crimes on bankers concerning Lehman Minibonds. That also shows Hong Kong could be international banking crime center of the world.

The Legco in HK is investigating Lehman Minibonds crisis and will issue the results in the coming month.

But the non-Lehman,   and many much more products mis-selling frauds need international financial regulators attentions as Hong Kong also pretends that it is a world class international financial center.