The Consortium of Defrauded Victims (CDV) have decided to present a black list of banks to avoid, based on experiences of failure by selected banks to comply with national and international Know Your Customer (KYC) rules and regulations and/or FATF anti-money laundering and terrorist financing policy and guidelines and/or failure to meet with CDVs inquiries to reach a settlement.
The banks play a pivoting role in investment fraud scams. If a fraudulent and criminal Client is not accepted by the bank, there is no transaction and money-laundering to feed the fraud syndicate.
If the banks would have done a proper identity screening during the initial customer acceptance process combined with a follow-up KYC reporting, most of the bank transfers presented on this blog would have been blocked and not allowed.
The CDV black list of banks to avoid will be recurrently updated as new data becomes available.
HSBC Hong Kong and Singapore
HSBC (HK and SG) opened receiving accounts on behalf of the beneficiaries Tlway Texco Ltd. and Lockway Ltd.
Tlway Texco Ltd. is registered in Singapore and mirrored via a company registration, Tlway Texco SDN. BHD., in Malaysia. The company was used as a front and cover to arrange with boiler-room sales from its office space in Kuala Lumpur and Pilau Penang, Malaysia. The CEO of Tlway Texco, Mr. Tabarruk Abdullaev, made partnership with the UK-citizen, Paul John Hayward and the US-citizen, Mark Stephen Hutcherson to split the profits from the boiler-room sales. The US-citizen, Jack Fletcher Prather, was appointed as Office Manager in Kuala Lumpur. The US-citizen and boiler-room principal, Glendon Richard Bullard, who is confirmed by US Authorities to have passed away on March 7, 2015 in Mae Hong Song in Northern Thailand, was also part of the boiler-room management.
The company, Lockway Ltd., was registered in Hong Kong with a Malaysian ‘goal-keeper’, Devaraj Singaram, as company director with one ordinary share with a par value of one HK dollar. Lockway Ltd. further used a faked business address in Hong Kong: Room 2303, Office Tower, Convention Plaza, 1 Harbour Road, Wanchai, Hong Kong.
A KYC screening would easily have revealed that the beneficiary, Tlway Texco Ltd., made fictitious advertisements on the internet providing flawed marketing and company information (see e.g. http://www.fibre2fashion.com/Tlwaytexco/) that did not meet with company registration data, including red figure financial statements filed to authorities in Malaysia (net profit: -540,730 Ringit; 2006). A simple Internet screening would further have revealed that the CEO of the beneficiary, Tlway Texco Ltd. was rather known for patents on firearms and weapons than as a cotton merchant & manufacturer – as claimed by the company.
The boiler-room sales, using the aforementioned beneficiary accounts at HSBC HK and SG, included the faked investment companies, Masahiro International, Jameson West Associates Ltd., Warner Beck Inc., McBain Baxter Holdings Ltd. and Carver Brooks Associates – all sending from within the same local network and IP addresses.
The US-citizen, Michael Lee Port, using a faked Belgian passport and identity, “Peter Steven”, is verified to have signed as company director and thereby had rights to withdraw money from receiving accounts. Mr. Port was arrested and imprisoned in Singapore in 2005. He was snatched while trying to withdraw cash from DBS bank in Singapore using The Roth Group (TRG) as receving account.
INTEL received verifies that the Police Fraud Squad in Singapore reported in April, 2005 about suspicious transfers of large sums of money on accounts held by Mr. Michael Lee Port. Nevertheless, HSBC HK and SG continued to maintain banking services to companies registered by the same Michael Lee Port using a faked ID.
HSBC HK have in their responses neither agreed to or denied liability to the accusations made by CDV. The banks has simply denied to agree on any settlement with CDV.
Given the fact that HSBC has recently been associated with plenty of bad publicity related to the bank’s role in several money-laundering cases being unveiled, CDV are somewhat surprised by the response received.
Taiwan Business Bank, Ltd.
The bank has responded to CDV and stated that they have complied with KYC regulations ant that the accusations made by CDV are not true. Therefore, the bank rejects any settlement with CDV.
The beneficiary of the receiving account arranged with by Taiwan Business Bank, Dragon Securities, was publicly warned against by the Financial Services Agency in Japan, as the company used a faked business address, 502 Hotta-kata, 3-6-10 Hirusaido, Kagurazaka, Shinjyuku-ku, Tokyo 162-0825, already in February, 2006.
The verified transactions, through Taiwan Business Bank bank with Dragon Securities as beneficiary took place during the Feb. 2006 to June 2009 period – more than three years after the Japanese regulatory had warned against the beneficiary (http://www.fsa.go.jp/en/refer/cold/).
The view of CDV is that this case does demonstrate that the bank failed to comply with local and FATF anti-money laundering and terrorist financing policy and guidelines.
The representatives of Dragon Securities are verified to have presented themselves with faked IDs and business cards (e.g. “David Prince”, “Charles Clifford”, “Jason Sinclair”, “Mark Gold”, “Michael James”, “Robert Robins”, “Justin Jones”, “Thomas Stanton”).
The beneficiary, Dragon Securities, also acted as a boiler-room and is verified to have been involved in unsolicited cold-calling and criminal sales of faked/inflated investment objects (“ALTPRO”).
Dragon Securities were further warned against publicly by, among others, the Swedish financial supervisory authority (fi.se) already in Sept., 2005 (http://www.fi.se/Folder-EN/Startpage/Register/Investor-alerts/Warning-list/Warning-for-Dragon-Securities/) – more than four years before the bank continued to allow transactions via the beneficiary, Dragon Securities.
//The Consortium of Defrauded Victims (CDV)