A California man, Ken Liem, has filed a lawsuit against three Asia-based banks, accusing them of failing to implement basic security measures that could have stopped scammers from defrauding him of nearly $1 million.
Victim of a “Pig Butchering” Scam
The lawsuit, submitted on December 31, 2024, in a California district court, details how Liem fell victim to a pig butchering scam. He was approached on LinkedIn in June 2023 with a cryptocurrency investment opportunity. Over several months, the scammers persuaded him to transfer funds under the pretense of investing on his behalf.
According to the lawsuit, the funds were funneled into accounts at Hong Kong-based Fubon Bank Limited, Chong Hing Bank Limited, and Singapore-based DBS Bank Limited. From there, the money was moved to third-party accounts, making it difficult to trace.
Banks Accused of Negligence
Liem’s attorneys argue that the banks failed to conduct adequate Know Your Customer (KYC) and Anti-Money Laundering (AML) checks, which would have flagged suspicious activity. They allege the banks either ignored or failed to recognize signs that the accounts were being used for fraudulent purposes.
The attorneys claim that a simple review would have shown a “complete lack of credible evidence” to support the legitimacy of the account holders’ business activities. Instead, the banks allegedly allowed illicit funds to flow from the United States to multiple Asian entities.
The suit also accuses the banks of violating the US Bank Secrecy Act. This federal law mandates that financial institutions maintain detailed records of transactions and report suspicious activity to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN).
Connections to US Financial System
The lawsuit asserts that the banks fall under the jurisdiction of the US Bank Secrecy Act due to their ties to the American financial system. DBS Bank has a branch in California, and Fubon and Chong Hing processed transactions through Liem’s Wells Fargo account.
Involvement of Shell Companies
The lawsuit also targets four Hong Kong-based companies—Richou Trade Limited, FFQI Trade Limited, Xibing Limited, and Weidel Limited—that allegedly set up the fraudulent accounts. These companies are accused of unlawfully diverting Liem’s funds and misrepresenting their intended use for cryptocurrency investments.
Liem’s attorneys are demanding a jury trial and a minimum of $3 million in damages. They argue the banks played a role in enabling the scam by failing to uphold their obligations under KYC and AML protocols.
As of now, Fubon Bank, Chong Hing Bank, DBS Bank, and the accused Hong Kong entities have not responded to requests for comment.
