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Deutsche Bank sues former senior executive over Hong Kong money transfer

Deutsche Bank AG has filed a lawsuit against its former employee Zhang Hongli, also known as Lee Zhang, for transferring $3.9 million to a bank account in Shenzhen.

According to the filing in a Hong Kong court, Deutsche Bank accused Zhang of transferring the money to the bank account of Harperskille Limited, an offshore company registered in Kowloon, Hong Kong.

The money went to Harperskille’s bank account at the Shenzhen branch of China Merchants Bank.

Deutsche Bank accused Zhang of breaching his fiduciary duty and demanded that he pay more than $6.3 million in compensation and interest for his “conspiracy with Harperskille to injure the bank by unlawful means,” the filing said. Details of the alleged breach were not specified in the filing.

Zhang worked at Deutsche Bank from 2001 to 2010 and has now joined the Industrial and Commercial Bank of China (ICBC) as a senior executive vice-president. He previously worked as the chief representative of Goldman Sachs Group Inc. in China.

Zhang is also a member of the Chinese People’s Political Consultative Conference, a top political advisory body.

Sources: Wall Street Journal, South China Morning Post, AFP

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Hui Zhi is the Senior Manager for Content with the China Compliance Digest, where a version of this post first appeared.

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