Confidential documents allege that HSBC knows that the U.S. investigation of the Ponzi scheme still allows scammers to transfer large sums of money to Hong Kong accounts

Instant International

Written by: Li Zuhong

2020-09-21 06:24

Last update date: 2020-09-21 06:25

A leaked confidential document disclosed that HSBC Holdings, in a Ponzi scheme involving US$80 million, knew that the US authorities were investigating, but still allowed suspicious funds involved in the case to be transferred to Hong Kong accounts via the US.

The International Federation of Investigative Journalists discovered from the leaked documents of the financial crime network under the US Department of the Treasury that between 2013 and 2014, HSBC knew that the regulator was investigating a Ponzi fraud involving US$80 million. U.S. operations transferred huge sums of money to HSBC accounts in Hong Kong.

According to the documents, the Chinese man involved in the case worked as a church pastor in Los Angeles, claiming to run an investment bank and double the profit after investing in a hundred days. He attracted investors through social networking sites, online seminars and seminars, and successfully "sucked money." US$80 million; In September 2013, the California regulator notified HSBC that it was investigating. In October of the same year, in February and March of the following year, HSBC submitted "suspicious activity reports" on the transactions involved three times. However, the Hong Kong account involved in the case was closed until the US Securities and Exchange Commission filed a lawsuit in April.

By 2017, the man involved was arrested in China and sentenced to three years in prison.

The document pointed out that the fraud case started after HSBC reached a $1.9 billion settlement agreement with the US government in 2012 due to money laundering issues. HSBC had promised to strengthen internal supervision and prevent criminal activities.

HSBC responded by saying that in 2012, it has launched several years of reforms to enhance the ability to combat financial crimes in more than 60 jurisdictions. Compared with the previous year, HSBC is now a safer institution, and the US authorities have also confirmed HSBC’s performance. All obligations stipulated in the agreement with the U.S. prosecutors were fulfilled.

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