A California resident has initiated legal action against three banks based in Asia, alleging that their negligence in conducting basic financial checks allowed scammers to defraud him of nearly $1 million. The lawsuit, filed in a California district court, centers on an investment scam where Ken Liem was approached via LinkedIn in June 2023 regarding a purported cryptocurrency opportunity.
According to Liem’s legal team, he was convinced to transfer funds over several months to individuals posing as investment professionals. These funds were allegedly deposited into accounts at Fubon Bank Limited and Chong Hing Bank Limited in Hong Kong, as well as DBS Bank Limited based in Singapore. The scammers then reportedly funneled the money to various third-party accounts.
The lawsuit accuses the banks of failing to implement adequate Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, which are critical in identifying and preventing potential fraud. Liem’s lawyers contend that a thorough examination of the accounts should have raised alarms about the legality of the transactions, arguing that the banks were likely aware of the potential for fraud given obvious discrepancies in the financial activities.
The banks are also charged with violating the US Bank Secrecy Act, which mandates that financial institutions maintain detailed records of transactions and report any suspicious activity. Liem’s attorneys assert that this law applies to the banks involved, as DBS operates a branch in California, and the other two banks executed transactions through his account at a US financial institution.
Additionally, several Hong Kong-based companies associated with the accounts are named in the lawsuit, accused of misappropriating Liem’s funds and misleading him regarding the intended investment. The plaintiff is pursuing a jury trial and seeks damages totaling at least $3 million. As of now, the banks and the implicated companies have not provided public responses to the allegations.
