Coutts Sues Singapore-Based Commodities Firm After Market Losses - Report

Tom Burroughes

20 February 2014

An executive of a Singapore-based commodities firm has been sued by Coutts & Co, the UK-headquartered private bank, to recover a total of S$19.9 million that the bank says it is owed, according to Bloomberg.

The bank declined to comment to WealthBriefingAsia about the matter when contacted.

The news service report said Neo Kim Hock, executive chairman of Blumont Group, has been sued by Coutts & Co, taking the sum banks and brokers are seeking to recover from an October crash to at least $140 million. Neo owes the money, the report said, after his shares in Blumont, Asiasons Capital Ltd and LionGold Corp held as collateral fell in the selloff. The report cited a lawsuit filed in the Singapore High Court. A closed hearing is scheduled this week, it said.

This publication is in contact with Blumont Group but had not received a response at the time of going to press.

The report said the Malaysian has also been sued by Interactive Brokers after he allegedly failed to pay for a S$26.5 million shortfall in his margin account.

The brokerage, based in the US, accused Neo and seven others of a “pump and dump” plan to manipulate shares of the three companies, according to a November lawsuit seeking to freeze S$79 million of their assets, the report said. At least two of the eight defendants are seeking to set aside the freeze.

Bloomberg said Neo has not replied to e-mails and return phone calls left with Blumont seeking comment. The claims relate to Neo’s private share holdings, Blumont said in an e-mailed response. The company said it will update shareholders when appropriate, the report said.