HSBC has called in police to investigate an alleged €90m fraud attempt in its securities division
Accountancy Age, 02 May 2008
Police are investigating an alleged €90m (₤70m) fraud attempt at the securities services division of UK’s biggest bank HSBC, understood to involve the operations staff at the bank, after being called in to its Canary Wharf headquarters in London on 25 April.
The balance of HSBC’s main euro account, which is normally between €30m and €1bn, reportedly was at zero before the bank traced a single transaction moving €90m from the account, the Financial News reports.
HSBC said no customer funds were involved and no money had been lost. The investigation is understood to have been triggered by unusual activity in its third-party securities settlement uncovered by the HSBC systems, according to Reuters.
City of London police said Jagmeet Channa, 25, was on April 25 charged with conspiracy to defraud, money laundering and abusing a position of trust and has been remanded in custody until June 25, when he will appear at Southwark Crown Court. Three other men linked to the investigation have been released on police bail.
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