HSBC Settles Madoff Fraud Securities Suit for $62.5 Million

New York, NY: A lawsuit against HSBC Holdings PLC, has been settled with Europe's largest bank agreeing to pay $62.5 million to a private group of investors who lost money in association with a Madoff securities fraud.

The investors had placed funds with Ireland-based Thema International Fund Plc, the assets of which were held with Bernard L. Madoff LLC, according to a statement by HSBC. According to a report by Bloomberg "Thema Fund, a so-called Madoff feeder fund, was controlled by Bank Medici AG. Bank Medici with its founder Sonja Kohn is part of a $59 billion suit by the trustee liquidating Madoff' firm."

Reportedly, Thema was one of several funds placed in the custodianship of HSBC units, which subsequently funnelled monies to Madoff.

In a statement issued by HSBC, the bank said the settlement "shall in no way be construed"as an admission of fault. HSBC still faces other Madoff-related lawsuits in other countries including Germany, and Luxembourg.

The settlement on behalf of investors in the Thema fund is pending court approval.

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Published on Jun-9-11