HSBC Settles $525M Suit Over PEMGroup Fraud

Law360, New York (November 28, 2011, 6:17 PM EST) -- HSBC Holdings PLC and six Taiwanese banks moved Wednesday to settle the banks' suit in California federal court claiming that HSBC's U.S. banking subsidiary helped Private Equity Management Group Inc. fleece them out of more than $500 million in an alleged Ponzi scheme.

Details of the settlement were not available, though according to the motion both parties will be responsible for their own attorneys' fees, costs and expenses.

The Taiwanese banks — Hua Nan Commercial Bank, Hua Nan Investment Trust Corp., Cosmos Bank, Entie Commercial Bank,...
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