Author Topic: Bank Fraud in Jersey  (Read 49243 times)

Offline selebi

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Bank Fraud in Jersey
« on: September 02, 2010, 06:19:38 AM »
Good day, I was wondering if anyone could recommend a lawyer who could help me with a fraud case against Standard Chartered Jersey Ltd?  The senior financial advisor at SCJL called me in May 2008 and told me that SCJL were putting together an investment product that they,SCJL, were going to launch and which they, SCJL, would be the principals.  The product would invest in European banks, be 100% protected, have no exposure to US financial institutions and could be sold easily whenever we wanted, it was called the "SCJL European Banking Recovery Note".  We declined.  A few days later she called back urging me to reconsider this 100% protected product as time was short and it was an excellent opportunity, "just sign last page and send it back and I will do the rest"  For some reason I agreed.  In Sept 2008 I was advised by the same woman that she had instead given all our money to Lehman in US for a completely different product with a different name, no protection and no market to sell it and that it (Stg100,000) was lost.  SCJL refuse to do anything.  Jersey Financial Services do not want to upset SCJL and say that the advisors string of lies was "a persuasave approach" and that the telephone calls and e-mail and summary sheet dont matter; Jersey police say they only take direction from Jersey Financial Services and so will not prosecute.  We have recordings of the telephone presentations which are all lies and the e-mail stating no US exposure.  Any help will be welcomed as this was our retirement funds.
George Burrow

Offline Chevalier Blanc

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Re: Bank Fraud in Jersey
« Reply #1 on: September 02, 2010, 04:30:46 PM »
I feel sorry for you but i would never do any business like that over the phone or email.
There are scams every day and everybody should know by now that you do not entertain anything like. Should have gone to the bank and got all this in writing.

Offline man in the street

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Re: Bank Fraud in Jersey
« Reply #2 on: September 03, 2010, 01:55:11 AM »
good luck, sounds like "boiler room" stuff, bois bois maybe good or someone from baker platt,   i guess it wont be cheap,  hope you qualify for legal aid, ask citizens advice.

Offline tonytheprof

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Re: Bank Fraud in Jersey
« Reply #3 on: September 03, 2010, 02:06:16 AM »


http://www.aboutlawsuits.com/lehman-brothers-class-action-1180/

Are you the same person commenting here, or is this a similar case?

Comment by George on 24 November 2008:
In May at the urging of Standard Chartered Bank we invested a large portion of our savings in a “European Banking Recovery Note” from SCJL with Lehman Europe as Gaurantors. Standard Chartered said that money was 100% protected, could be traded early, would not have any US financial exposure. Standard Chartered now say money was invested 100% with Lehman US, cannot be traded, is not protected and not their problem that bad / inaccurate information was supplied by them. Anyone any suggestions how to go after Standard Chartered Bank?

Offline tonytheprof

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Re: Bank Fraud in Jersey
« Reply #4 on: September 03, 2010, 02:12:58 AM »
Do you have any substantial documents regarding this sale and the pitch used?

1. Have you tried Citizen's Advice to see what they say?
2. Have you taken it up with a Senator or Deputy to see if they can help? Some of them have experience in investments (e.g. Ben Shenton) and might be able to steer you the right way to a resolution.
3. See if a lawyer like Philip Sinel would take it on a "no win, no fee" basis.
4. If nothing happens, you could always send documents to "Private Eye" to look into. That might prompt the JFSC to do something.

Offline selebi

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Re: Bank Fraud in Jersey
« Reply #5 on: September 30, 2010, 07:48:25 PM »
Thank you for your advice.  Based on first response I contacted Mr McRandle of the local newspaper who at the moment is trying to help.  He has circulated complaint to senators and some legal people.

Citizens Advice were very nice, suggested trading standards but the could not help as financial matter, second suggestion was police however they say take direction from JFSC so will not act

I brought to the atention of the chief minister who passed back to JFSC who again said could do nothing as no ombudsmen powers

Yes I am same person who you saw on other web site but that produced no response.

I would like to leave with Mr McRandle for now as he has been most supportive.  If he cannot achieve anything I will try your suggestion and contact Philip Sinel

Have not heard of private eye, are they UK based?

I do have recordings of phone calls and e-mail so I, as a lay person with o legal training, believe that the advisor from Standard Chartered lied from the start of proceedings until she had her sale.  I agree with other respondent that I should never have trusted her but I have been a customer of Standard Chartered since 1974 and had no reason to suspect a scam at this point.

I thank all of you for your advice and will check back more frequently in future.
George

Offline David Rotherham

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Re: Bank Fraud in Jersey
« Reply #6 on: September 30, 2010, 11:59:47 PM »
talking of frauds, anyone else noticed how "George" writes in just the same style as those nice Nigerian accountants who are always offering to cut people in on the fortunes they need to park in a British bank account?

rogueelement

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Re: Bank Fraud in Jersey
« Reply #7 on: October 01, 2010, 12:41:35 AM »
Indeed my friend , we are resulting in the opportunity to enable your friendship with $20 million ,on the case of my very sick father who has enabled much fortune and is about to be dead, unless we can win your support (not to save him obviously) we shall fall short of riches due by a promise from an oil well ,invested in by de government , but which has fallen aside  with $50 million left by my cousin that we are entitled to , you my friend can share this wealth if you please help to me . I  shall travel to london to meat yu and if you buy my ticket ,we shall all be very very minted ! All I need for me is  your bank acount number and your password , 3 pices of your headed paper duly signed , we shall all glory in the stupidity of our government !
Yes!! Yes ??
please reply to Nigerianscammuppets @hotmail.com

Offline Dylan

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Re: Bank Fraud in Jersey
« Reply #8 on: October 01, 2010, 03:03:50 PM »
Go see the Greffier in The Royal Court and he will advise you how to proceed as an unrepresented litigant.
He will also advise you to get a lawyer, which you may need, If your case is as simple as you make out, then by actioning the Bank you may find you get an instant result. If you do not, and it "went all the way" you would find a great deal of help is given to you during the process. The last thing the Judiciary like to see is a well paid experienced Lawyer unfairly bullying an unrepresented Litigant. This is not often done over here (I have witnessed one case where the Lawyers wanted £30k up front told the Plaintiff that he had no chance and the guy won by himself), but is more common on the mainland.
After all what do you have to lose?
!dereggub si draobyek ym kniht I

Offline selebi

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Re: Bank Fraud in Jersey
« Reply #9 on: February 27, 2011, 01:45:55 AM »
Good day, I would like to provide an update for those who may be interested and to comment on David Rotherham's posting as for some reason he finds our loss amusing.  The reason we wrote asking for advice was because Anna Pawlyszyn, a senior financial advisor at Standard Chartered Bank in Jersey spun a long string of lies which unfortunately I fell for.  Yes it it is like a Nigerian scam except this time it is a scam by a Jersey bank and Jersey registered financial advisor and I am the fool that did not see it coming.  As a result my wife and I lost a large portion of our retirement funds, GBP100,000 to be precise.

Harry at the evening post passed our problem on to senator Sara Ferguson in September who offered to try and come up with a solution.  Unfortunately she has today advised me that she is unable to help.

I will contact the Jersey court to see what would be involved in trying to bring a private case against Anna Pawlyszyn and her employer but imagine it will not be easy from Canada.

Thank you to those who have offered suggestions.  A warning to those who bank with Standard Chartered beware it could happen to you one day - dont expect any support from Jersey Financial Commission.

George

Offline boatyboy

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Re: Bank Fraud in Jersey
« Reply #10 on: February 27, 2011, 04:00:46 AM »

I see no request for money here, just a story of loss, but it is good to be cautious.


In  response to George,

The fact of the matter is George, all banks offer bonds and investments with certain " risk" attached.

I have a “ little” risk with a small deposit in a deposit account in a big name bank. The bank is not acting illegally by paying me and millions of others a pathetic rate of interest, but lending my money and depositors  for loans to people at very high rates of interest.  The rates they offered are the rates we accepted

This is where the JFSC or anyone else would not get involved, why should they ?

However you do need to know Jersey is very keen to tell the world how upstanding and well regulated the financial institutions are that operate here.

So it follows that if you are in possession of a contract offering an agreed return and you can prove this, then the bank  ( employees are still taking business in the name of the bank )  broke its contract by paying you less than agreed  ( in the written contract ) then that is fraud and a  different matter.

Do not send  any original contracts or agreements by post only copies. They can strangely  disappear.

A good lawyer would be interested  should this be the situation,  and it would grab the attention of other financial  commentators and probably  the regulator.

BB
« Last Edit: February 28, 2011, 02:21:30 AM by boatyboy »

Offline AnotherOne

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Re: Bank Fraud in Jersey
« Reply #11 on: March 08, 2011, 04:49:09 AM »
Basically the same thing that George talks about happened to me. The status of the Lehman bancruptcy and the "European Banking Recovery Capital protected Notes" is still very unclear. At some point they just put the value to zero, but told us that we would still get a part back. And we always just hear that things are being worked on, but nothing happens yet. Very frustrating. We know these lawyers are now transforming the leftovers into lawyers fees.

When bying into the scheme I was given the impression that this was a fund, investing in actual banks, with downside risk guaranteed by something like options, organized by Lehmans. It turned out that a 'note' is a much more shady vehicle, and that it wasn't at all 100% safe, that there was not just a large risk, but that the whole thing just evaporated when Lehmans went belly-up. But this was never made clear, and the people from Standard Chartered tell us they are still helping us to get something back.

I am not of the opinion that it was downright fraud by Standard Chartered, but
= they did not explain the risk correctly
= it was sold as a fund in European banks, with at least some underlying value, that can lose value. It turned out to be a 'note' that could just evaporate into nothingness, when Lehman went bankrupt. That possibility had not been thought of.
= it was sold as something with a 100% guaranteed safety
= the promised percentage of interest/growth guaranteed was not excessive at all, actually quite modest. So that gave no reason to suspect it of being 'too good to be true'
= the most serious thing was that Standard Chartered were at that point offering this as their only option, as their best and only 'fund' to invest in at that time. They sold it quite aggressively, and were quite persistent.
= On top of this, they encouraged me to put all of my money into this one fund, retreiving what I had in another fund, suggesting that risks were safely spread over many european banks, so I would not be putting all my eggs into the same basket. At least I didn't fall for that, but I still put in a substantial amount.

   I would like to hear from other people with the same story (and the previous poster). As they were selling only this one 'fund' (or 'note' in effect), selling it quite hard, and probably to all their customers, I expect that there will be many others on the same situation.

   Searching with google, I found a link to news about Standard Chartered buying back "equity-linked products guaranteed by the now bankrupt Lehman Brothers" http://www.cnbc.com/id/41844705 .. possibly not exactly the same story, but it sounds comparable. Only that is in Hong Kong.

Offline offshore

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Re: Bank Fraud in Jersey
« Reply #12 on: April 11, 2011, 03:33:15 PM »
Re the postings from AnoherOne and Selebi.   I too was sold the Lehman backed European Recovery Notes in 2008 and have been in contact with Standard Chartered on several occasions about getting them to refund the loss.    Whilst I have lost money in other investments, this is the first time where I believe that the Bank bears at least some responsibility for the loss.  I believe that the bank actively sold these products and were motivated to do so due to the high commissions offered (Aprox 3.5% for USD and 3.9% for EUR).   I don't believe that fraud as such was involved but I do believe that the bank had sufficient information from the market that should have caused them to profile this investment at a higher risk level than they did. 

SCB is being particularly intransigent in settling this matter - unlike many other banks.  Citi, UBS, Credit Suisse and others have all settled with customers and UBS was successfully sued in the US and the customer received 100% of his investment plus legal costs.  Precedents abound but SCB is hiding behind its legalese and refusing to acknowledge that they actively sold a product that was backed by an organization that the banking community was having questions about - but, critically, not the rating agencies, and rated it as suitable for low or - in my case - Zero risk tolerance.

I would like to hear directly from both AnotherOne and Selebi as well as anyone else who is in a similar position as  I am approaching a UK based lawyer this week to see what possible litigation options are available. 

Offline offshore

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Re: Bank Fraud in Jersey
« Reply #13 on: April 12, 2011, 05:56:37 PM »
To any investors who lost money on the Lehman Bros backed European Banking Recovery note - I just saw this article in the WSJ.   The tide may be turning in favour of the small investor.

 
   DOW JONES NEWSWIRES
 

The Financial Industry Regulatory Authority imposed a $2.5 million fine on UBS AG's (UBS) wealth-management services unit and ordered $8.25 million in restitution in settlement of charges that it had misled investors about the risk of default in certain Lehman Brothers Holdings Inc. notes.

In the months leading up to Lehman's collapse, UBS Financial Services Inc. advertised the investment bank's so-called principal-protection notes without emphasizing that the debt was still unsecured, Finra said. Lehman eventually filed for bankruptcy in September 2008.

"The significant majority of UBS's Lehman structured product sales were conducted properly and any client losses were the direct result of the unprecedented and unexpected failure of Lehman Brothers in 2008, which affected all Lehman investors," the bank said in a statement.

UBS said the reimbursement will apply to a limited number of investors. The notes were bought between March and June 2008.

PPNs are fixed-income securities with a bond and an option component that promise a minimum return equal to the investor's initial investment. They don't guarantee the principal in the event of a default.

"This matter underscores a firm's need to be clear and comprehensive in disclosing risks of the structured products it sells to retail investors," Finra enforcement chief Brad Bennett said. "In cases, UBS's financial advisers did not even understand the complex products they were selling, and as a result, they neglected to disclose necessary information to customers about the issuer's credit risk so investors would understand the magnitude of the potential losses."

UBS settled the matter without admitting to or denying the charges.

I have been in contact with lawyers in Jersey re Standard Chartered.  Anyone else out there who has an issue with SCB and the Eur Banking Recovery Notes please contact me.


Offline selebi

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Re: Bank Fraud in Jersey
« Reply #14 on: July 27, 2011, 01:39:29 AM »
The following was recently received from senator Shenton

Saturday, March 05, 2011Lehman Brothers Equity-linked Notes The Securities and Futures Commission (SFC) and the Hong Kong Monetary Authority (HKMA) announced today that an agreement has been reached with Standard Chartered Bank (Hong Kong) Limited (Standard Chartered) in relation to the bank’s distribution of equity linked structured notes issued and guaranteed by Lehman Brothers (LB ELNs) (Notes 1&2).  Without admitting liability, Standard Chartered has agreed to make a repurchase offer to eligible customers (Note 3) holding an outstanding LB ELN distributed by Standard Chartered. The total value of the repurchase offer is estimated to be approximately HK$1.48 billion and will cover over 95% of the outstanding transactions in LB ELNs by Standard Chartered customers.

It appears that almost all jursidictions other than Jersey have now forced Standard Chartered to refund customers money.