Business World

Thursday 19 October 2017

HSBC sued by investors over Madoff losses

HSBC
HSBC

Tim Healy

A Bahamas-registered company is suing the Dublin branch of HSBC bank, a Swiss investment manager, and a Spanish bank, over the alleged misappropriation of $2.9m (€2.5m) by jailed US fraudster Bernie Madoff.

The case was entered into the Commercial Court list yesterday by Mr Justice Brian McGovern.

The judge adjourned the case after he was told there were separate proceedings over the matter pending in the courts of New York and stay may be sought on the Irish case pending the outcome of the US case.

SPV Osus, a Bahamian corporation formerly called Optimal Strategic US Equity, is suing HSBC Institutional Trust Services (Ireland Ltd), HSBC Securities Services (Ireland) Ltd, Optimal Investment Services SA, Geneva, Switzerland, and Banco Santander SA, Spain.

It is claimed the defendants were negligent and and in breach of contract/fiduciary duty by appointing and/or monitoring companies controlled by Bernard Madoff, which allegedly misappropriated $2.9m invested in December 2008.

Irish Independent

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