UK
NRI bank clerk charged with alleged attempted £70million
fraud at HSBC
London, May 02, 2008
Punit Aggarwal
NRI Jagmeet Channa, 25, from Ilford, Essex has been charged with
conspiracy to defraud, money laundering and abusing a position
of trust at HSBC. He worked as an administration clerk and responsible
for ensuring that records of trades were checked through at the
end of the day at the bank's 42-storey headquarters in Canary
Wharf, UK
City of London police said:
- Three more men, remain on police bail in connection with the
inquiry.
- No customer funds were involved and no transactions were disrupted.
No customer or bank funds were lost in the alleged fraud.
- The alleged fraud involved moving money electronically from
one account to another
In 2002, Goldman Sachs secretary stole £4.3million from
her employers. The big lenders admited that they have lost billions
of pounds on investments linked to America's subprime mortgage
market. Bank control systems were already in the spotlight after
the £3.8billion rogue trader scandal at French bank Societe
Generale, according to local media.
A futures trader lost the business £71million by unauthorised
gambling on the price of wheat. In March, Credit Suisse caused
further disquiet by admitting it had discovered a £1.4billion
fraud among its London-based traders.
UK HSBC is cooperating fully with a police investigation into
an alleged fraud at the bank. The balance on HSBC’s main
euro account, which normally holds between €30m and €1bn,
is understood to have hit zero, before the bank traced a single
transaction moving €90m from the account. The bank is believed
to have recovered the funds.
Jagmeet Channa has been remanded in custody until June 25, when
he will appear at Southwark Crown Court.
