ABN Amro Bank in Singapore is being sued by a Bangladeshi businessman for allegedly misrepresenting the safety of his investments which subsequently led to losses, Bloomberg reports.

Anis Ahmed, the owner of Langeford Capital, reportedly said in court filings that he had lost $1 million after ABN Amro told him in January 2008 that one of his investments was safe, without disclosing that it was linked to the now-defunct Lehman Brothers Holdings. Ahmed added that the bank knew of his low risk appetite and aversion to US-related investments.

In its defence, ABN Amro had said that Ahmed and his business were classified as a "high net worth, experienced and sophisticated investor with a reasonable appetite for risk." Ahmed allegedly relied on his own judgment and had seen the product term sheet bearing Lehman's name as product issuer.

Neither of the parties were available for comment at the time of publication.