HSBC Hong Kong Beats Ponzi Scheme Suit

Law360 (August 10, 2020, 7:00 PM EDT) -- A New York federal judge held Monday that a group of California investors who alleged that HSBC Hong Kong aided a $37 million Ponzi scheme lacked jurisdiction to sue the bank and tossed the suit without prejudice.

Rigoberto Vasquez and Eva Garcia invested in WCM777, now known to be a Ponzi scheme, and said HSBC Hong Kong should be held partly responsible for the millions of dollars scammed from investors who thought they were buying cloud-based computing services packages.

They said HSBC Hong Kong participated in money laundering but U.S. District Judge Paul A. Engelmayer, noting the court previously held that...

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