British lender HSBC Bank has defeated a class-action lawsuit brought by angry investors who lost money in Bernard Madoff’s vast Ponzi scheme.
The investors claimed that HSBC had supported the deception by marketing structured financial products that channeled hundreds of millions of dollars to Madoff through feeder funds.
According to the claim from the investors HSBC ignored «serious red flags» that should have alerted officials to the rolling fraud.
Largest Financial Fraud in U.S. History
However, in New York on Thursday a Manhattan federal judge threw the case out, saying the court lacked any jurisdiction over the HSBC units located outside the US that were sued.
In 2009 Bernie Madoff was sentenced to 150 years in prison after his «Ponzi scheme» spectacularly unraveled revealing a black hole in the region of $65 billion in missing investments.
