HSBC Can't Shake $525M Suit Over PEMGroup Fraud

Law360, New York (May 23, 2011, 3:51 PM EDT) -- HSBC Bank USA NA on Thursday failed to upend a $525 million suit brought by six Taiwanese banks in California implicating it in deceased financier Danny Pang’s Private Equity Management Group Inc. Ponzi scheme.

The federal court rejected HSBC’s attempt to enforce the forum selection clause and arbitration clauses in PEMGroup’s offering memoranda and send the case to the British Virgin Islands and ultimately found that the bulk of the plaintiffs adequately alleged that HSBC helped to propel the fraud while acting as cash and asset...
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Case Information

Case Title

Hua Nan Commercial Bank et al v. HSBC Bank USA NA et al


Case Number

2:10-cv-08773

Court

California Central

Nature of Suit

Banks and Banking

Judge

Philip S. Gutierrez

Date Filed

November 16, 2010

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