Stanford Investors Sue HSBC, Others Over Deposits

Law360, New York (August 25, 2009, 6:50 PM EDT) -- Five banks, including HSBC Bank PLC and Bank of Houston, have been hit with a putative class action by a group of investors that accuse the institutions of playing an "essential role” in the alleged fraud scheme masterminded by Texas billionaire Robert Allen Stanford.

The suit, filed in a Texas state court in Houston on Monday, alleges the banks handled deposits for Stanford's Antiguan-based bank and “reaped substantial fees” in doing so.

The other three banks named as defendants in the suit are Toronto Dominion Bank,...
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