John Li Kwok-heem, a Hong Kong-based investor, is suing Standard Chartered International (USA)compensation over investment losses caused by exposure to the Ponzi scheme perpetrated by the notorious fraudster Bernard Madoff, The Standard reports.

According to the publication, John Li Kwok-heem, a cousin of chief justice Andrew Li Kwok-nang, is seeking HK$7.8 million ($1.17 million) from the bank, which bought the American Express Bank where Kwok-heem made the investment.

Standard Chartered International (USA) did not comment at the time of publication after it had been contacted by WealthBriefingAsia.

It has been reported that Kwok-heem also seeks repayment of distribution and servicing fees, interest and costs for the period between August 2005 and June 2008.

Kwok-heem, whose portfolio plunged from $1.47 million on 30 November to $1,602 at the end of 2008, alleges he was given false information about an investment fund, according to a writ of 12 April. A private banking officer is alleged to have recommended that the client invest $1.17 million in a fund operated by Fairfield Sentry, which was a collective investments scheme, in August 2005.

While the gloom is lifting following the financial crisis of 2008, lawsuits from disgruntled investors over investment losses are still coming thick and fast, many of which relate to negligence over due diligence. 

In another separate case, Selina Kwok Wai-hing is reportedly suing HSBC Private Bank (Suisse) for HK$80.96 million ($10.43 million) for damages and losses in respect of financial services.