HSBC Named In $50M Suit Over Texas Firm's Collapse

Law360, New York (December 14, 2006, 12:00 AM EST) -- A federal class action lawsuit was filed Wednesday against the French unit of HSBC Holdings Plc, accusing one of the lender’s predecessors-in-interest of funding an offshore scheme that defrauded investors out of more than $50 million.

The putative class action, filed in the U.S. District Court for the Northern District of Texas, revives a drawn-out dispute over the 1998 collapse of financial advisor Sharp Capital Inc. - a fiasco that led to ongoing regulatory action and jail time for Sharp’s principals.

The suit claims that HSBC...
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