As a seasoned analyst with over two decades of experience in the banking and financial industry, I have seen my fair share of questionable practices that skirt the line between ethical business and outright fraud. This case, involving the alleged pig butchering scam that defrauded Ken Liem of nearly $1 million, is one such instance where the lines seem to have blurred significantly.
In my view, it appears that the three Asia-based banks – Fubon Bank Limited, Chong Hing Bank Limited, and DBS Bank Limited – failed in their due diligence by not conducting adequate checks on the accounts involved in this scam. The fact that these transactions moved through Ken’s bank account at Wells Fargo in the United States suggests a lack of attention to detail, which is concerning.
The allegations that the banks knowingly assisted in extracting funds for illegal activities like pig-butchering scams are particularly troubling. If true, this would be a clear violation of not only basic banking standards but also the US Bank Secrecy Act (BSA).
In my experience, financial institutions have a responsibility to their customers and the broader community to ensure that they do not become unwitting accomplices in fraudulent activities. It’s crucial for them to comply with regulations like the BSA, which requires them to keep detailed records of transactions and report suspicious activity to the appropriate authorities.
In a somewhat lighter note, I can’t help but wonder if these banks were so engrossed in their pig-butchering scam investigations that they forgot to check their own books! But jokes aside, this case serves as a reminder that financial institutions must prioritize transparency and due diligence to protect their customers and maintain trust in the system.
A person living in California is taking legal action against three banks based in Asia, claiming that these financial institutions neglected to perform fundamental verifications, potentially enabling cryptocurrency fraudsters to steal close to a million dollars from him.
On December 31, 2024, lawyers representing Ken Liem claimed in a court case that he fell victim to a pig butchering crypto investment fraud. The alleged incident started when he was approached on LinkedIn in June 2023 with an enticing cryptocurrency investment opportunity.
According to Liem’s lawyers, it was represented to him that he was contributing money for investments managed by these suspected crypto scammers, over a period of multiple months.
According to his lawyers, the money was subsequently transferred to bank accounts at Fubon Bank Limited in Hong Kong, Chong Hing Bank Limited, and DBS Bank Limited based in Singapore. The individuals involved in the scam then moved this money to various other external accounts.
The legal team alleges that the banks neglected to thoroughly carry out customer identification, anti-money laundering, and various other regulatory checks. These checks, if properly implemented, could have flagged potential issues with account holders, thereby preventing them from creating accounts initially.
According to the attorneys, it’s highly plausible that the bank understood that the account owner was planning to deceive the victims, as even a casual examination would have shown that there was no reliable proof supporting the legality or legitimacy of their business dealings.
In the lawsuit, Liem’s lawyers argue that the banks seemed to turn a blind eye to funds of dubious origin being transferred from the U.S. to numerous Asian entities, which these banks managed and controlled accounts for.
“And thus assisted in the extraction of hundreds of thousands of dollars, if not millions, that funded pig-butchering scams.”
The legal action against the banks additionally alleges non-compliance with the United States Bank Secrecy Act, a law that mandates financial entities to maintain thorough transaction logs and notify the Financial Crimes Enforcement Network within the U.S. Department of the Treasury about any questionable activities.
According to Liem’s legal team, the banks involved are bound by the Act as DBS operates a branch in California, while Fubon and Chong Hing handled transactions through Liem’s account at Wells Fargo, an American bank.
The suit additionally implicates several Hong Kong companies, including Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited, for allegedly illegally transferring Liem’s funds into other parties’ accounts.
Additionally, they face charges of misrepresenting the purpose of the funds as being for cryptocurrency investments. Lawyers representing Liem are requesting a court trial by jury and a compensation of at least $3 million in damages.
Fubon Bank Limited, Chong Hing Bank Limited, and DBS Bank Limited declined to provide immediate comments when asked.
As a seasoned researcher with years of experience in conducting investigations, I have encountered situations where companies are unreachable for comment during my work. In this specific case, I attempted to contact Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited for their perspectives on a particular issue at the time of publication. However, despite my best efforts, these companies did not respond. This scenario is not entirely unusual in research, as sometimes companies may be unavailable, busy, or simply choose not to comment, which can impact the depth and breadth of information available for analysis. Nonetheless, I will continue to diligently pursue other avenues to gather insights and maintain an objective perspective on the matter at hand.
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2025-01-03 06:10