HSBC Private Bank International has charged Safra National Bank of New York for allegedly poaching seven bankers liable for US$4 billion in private banking assets and attempting to steal clients, according to Law360.
HSBC has sued Safra and five of the former HSBC bankers, who provided wealth management services for HNW clients in Central America, for allegedly conspiring to help Safra build a Latin American private banking business to compete directly with HSBC.
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"The employee defendants stole HSBC PBI’s client files, business, marketing and strategy documents, employee compensation information and other non-public financial and business information," HSBC claimed in the suit.
HSBC said that Manuel Diaz and Jose Ortega, presidents of the bank’s Latin American private banking business based in Miami, had been talking with Safra since May 2013, about helping the competitor build a Latin American business.
According to the lawsuit, Ortega and six other employees resigned between July 15 and July 31 and Safra has met 11 HSBC employees to offer them a job with a better compensation package.
HSBC said: "With the confidential client and business documents stolen, and the seven key employees in the Central American group, Safra is poised to immediately and illegally steal HSBC PBI’s business in Central America, raid its clients and replicate its business strategies."
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By GlobalDataThe lawsuit also names former HSBC bankers Jorge Hine, Jessica Valera and Diana Saludes as defendants along with Diaz and Ortega.
HSBC said each of the bankers signed employment contracts that included clauses prohibiting them from working for a competitor, soliciting an employee or soliciting a client for 90 days.
