HSBC Accused of Ignoring Red Flags as Elderly Client Lose…

HSBC’s U.S. banking arm is facing a lawsuit from a retired anesthesiologist and his family, who allege the bank failed to act on repeated warning signs as scammers drained more than $8 million from the elderly man’s accounts through a long-running online fraud scheme.

The complaint, filed in California federal court, claims Song Dow Lee, now in his 80s, was targeted in two separate “pig butchering” scams — a form of romance-based fraud in which victims are groomed over time and persuaded to send increasingly large sums of money. His sons, acting on his behalf, argue the bank should have intervened sooner to stop the transactions.

According to the filing, Lee was first contacted in 2021 by someone using the name “Jessica Li” on Facebook. The individual allegedly built a personal relationship with Lee and convinced him to invest in what she described as a Hong Kong financial business. Over a matter of weeks, Lee shared sensitive personal and financial information, including identification documents and banking credentials.

Over the next several years, millions of dollars were wired to accounts in the United States and overseas, including Singapore and Hong Kong, the lawsuit states. The website associated with the supposed investment firm later vanished, and communication stopped.

After his previous bank limited his ability to make transfers, Lee opened an account with HSBC in 2023 and continued sending money. The family contends that HSBC employees processed large and frequent wire transfers that should have triggered scrutiny, especially given Lee’s age and the unusual travel required to complete the transactions. The complaint says he regularly drove from Arizona to a branch in Southern California to authorize payments in person.

The lawsuit also names an HSBC account manager, alleging staff were aware of the customer’s circumstances yet failed to halt or investigate the activity. Plaintiffs claim the bank did not place restrictions on the account until late 2024, and even then, controls were lifted shortly after, allowing additional transfers to go through.

A second alleged scam began months later, with another person contacting Lee through social media. Over roughly seven months, he reportedly sent an additional $4 million and even purchased an engagement ring for the supposed partner, despite warnings from law enforcement that the relationship was fraudulent.

The family accuses HSBC of negligence, breach of fiduciary duty and violations of California’s elder financial abuse laws. They argue that stronger monitoring or intervention by the bank could have prevented substantial losses.

Representatives for the parties have not publicly commented on the claims. The case, Lee et al. v. HSBC Bank USA NA et al., is pending in the U.S. District Court for the Central District of California.

The lawsuit arrives as regulators and consumer advocates warn that “pig butchering” scams are increasingly targeting older adults, often resulting in devastating financial consequences.