HSBC Faces Lawsuit Threat In Monaco

by Ulrika Lomas, Tax-News.com, Brussels

29 January 2002

In another twist in HSBC's controversial purchase, two years ago, of the banking empire of Edmond Safra, it was revealed on Monday that HSBC Republic, the organisation's recently aquired Monaco branch, could face legal action from disgruntled customers.

Around 30 clients of Stephen Troth, the former manager of the Monaco branch of HSBC Republic, lost around $20 million in a fraud uncovered late last year. It is alleged that Mr Troth undertook illegal foreign exchange transactions with some of his clients' assets, with a confession to this end having reportedly been received following his arrest in September.

However, the details of the transactions are proving hard to uncover, and the bank's customers are angry that some clients have received compensation while others haven't.

However, HSBC has reassured customers that it is working with the local legal system to untangle the situation as quickly as possible, and has sent client-relations staff from its head office in London to pour oil on the troubled waters. 'No client will lose out because of this,' a spokesman for HSBC promised earlier this week.

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