A former Chinese billionaire filed a legal suit in London against investment banking giant UBS Group AG, as he escalates his attempts to retrieve the $500 million that he lost after the firm issued a margin call.
Guo Wengui, a fugitive Chinese tycoon who has close ties to President Donald Trump’s legally conflicted confidant Steve Bannon, has filed another legal suit against investment banking giant UBS Group AG, as he escalates his attempts to retrieve the $500 million that he lost after the firm issued a margin call.
According to the lawsuit filed at London’s High Court, Guo claimed that the Swiss bank pressured him into borrowing $500 million to purchase a stake in Chinese brokerage Haitong Securities.
The court documents indicated that UBS called in a margin loan on the money that was lent to the businessman after his shares dropped by 35%.
The bank then proceeded to the selling of the shares despite a 45% plunge in Haitong’s Hong Kong-traded shares.
According to the businessman, UBS only gave him $4.7 million after pushing through with the stock sale, almost wiping out his $500 million investment.
Guo, also known as Miles Kwok, said that before the sale of shares happened, he was completely unaware that the margin call agreements were indicated in his contracts with UBS.
UBS then released a statement to refute Guo’s claim, saying that it would “vigorously defend itself” against the Chinese tycoon’s lawsuit.
Before his court filing in London, Guo also brought a similar case in New York. However, the officials dismissed his claim because they do not have appropriate jurisdiction to hear a case regarding an investment that was made in Hong Kong.
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