Standard Chartered sued in Singapore over Madoff 'feeder fund'

SINGAPORE: Standard Chartered Bank was sued by two groups of Dubai-based investors in Singapore claiming they lost $10 million after being misled into investing in funds that channeled money to Ponzi scheme operator Bernard L Madoff.

American Express Bank, which has since been acquired by Standard Chartered, had misrepresented Fairfield Sentry as an "extremely stable" investment, the investors said in two lawsuits filed with the Singapore High Court. The bank also claimed it performed "extensive due diligence" on Fairfield, also-called feeder fund in Madoff's Ponzi scheme, according to court papers submitted by the investors.

The two groups of former clients were experienced investors who knew of the risks involved, Standard Chartered said in filings on June 27. The London-based bank denied misleading the investors and wasn't responsible for their investment decisions, it said in the filing.

Ally Lim, a Singapore-based spokeswoman at Standard Chartered, declined to comment as did Niru Pillai, the lawyer representing both groups of investors.

The first group of seven investors is claiming $5.34 million from the bank while the second group of 17 is seeking $4.75 million, according to their lawsuits.