Two groups of Dubai-based investors in Singapore have sued Standard Chartered Bank for misleading them into investing funds that actually channeled money to invest in
was sued by claiming they lost $10 million ?after being misled into investing in funds that channeled money into “Ponzi” scheme of US fraudster Bernard Madoff.
The investors said in two lawsuits filed with the Singapore High Court said the American Express Bank, which has been lately acquired by the Standard Chartered Bank, had misrepresented Fairfield Sentry as a stable investment. Investors also added that the bank assured investors about ?extensive due diligence? on Fairfield, which was a feeder fund to Ponzi scheme.
The London-based bank, however, denied misleading the investors andwas not responsible for their investment decisions. They are contesting the claim and has said they are not liable for the lost money. The officials argue that the investors were experienced and had signed papers exempting the bank from any duty to monitor their transactions. ?
Mr. Madoff?s scheme is believed to have begun in the 1970s and has already defrauded thousands of investors to the tune of billions of dollars. This has led to thousands of legal actions by investors against him.
A United States federal bankruptcy judge ruled out that investors in feeder funds of Bernard Madoff?s Ponzi scheme do not qualify as customers of Mr. Madoff.
Sources: Al Arabiya news, Newzglobe