Singaporean billionaire's ex-wife sues HSBC over bank negligence in her investment portfolio
Feb 11, 2014 05:16 PM EST
Teo Geok Fong, who is the ex-wife of Singaporean billionaire Peter Lim, filed a case against HSBC Holdings Plc, Bloomberg said in its report. Citing bank negligence, Teo claimed in her lawsuit that the bank misled her into investing certain products that incurred losses in the end. Teo also added in the complaint made with the Singapore High Court that HSBC has urged her to purchase products like equity-linked notes, decumulators, accumulators and others that were not suitable to her risk profile, and was motivated to do so out of its commercial interests or financial benefits.
Teo, said Bloomberg started making investments in private banks after reaching a settlement with her former husband in their divorce in 2002. HSBC said in its court papers that Teo obtained S$50 million (US$39 million) to settle her divorce with Lim.
Lim, known as "Remisier King," or a stockbroking company agent that receives commissions per transaction, became a billionaire thanks to his holdings in a chain of Manchester United cafes across Asia and in palm oil producers. Last year, Lim offered a £320 million or $525 million to acquire Premier League team Liverpool, Bloomberg said. The soccer team was later acquired by the owner-group of the Boston Red Sox.
Eugene Thuraisingam, Teo's lawyer, said in an emailed statement today, "Our client is pursuing this action rigorously in the courts and expects a favorable outcome."
The London-based bank has since rejected claims made by the high-school educated homemaker. The largest bank in Europe had asked the court to dismiss the claims made by Teo, according to the bank's defense, which was filed last month. HSBC said in its filing that Teo presented to the bank as an experienced and sophisticated, and that she has five other private bank accounts at a minimum. As such, HSBC said that as Teo's portfolio grew, her risk appetite was to blame for her losses.