BOC Hong Kong staff arrests in relation to Lehman Brothers

On April 12 Bloomberg reported that BOC Hong Kong had released a statement to the Hong Kong Stock Exchange, stating that two staff had been charged by the city's Commercial Crime Bureau in connection with the sale of structured products linked to Lehman Brothers Holdings Inc. They also reported that a third employee was arrested and hadn't yet been charged.

BOC Hong Kong was the biggest seller of the Lehman Brothers products, and was among a group of 16 banks that agreed a settlement arrangement for victims with the HKMA and the city's Securities and Futures Commission.

The two employees were charged April 8 under provisions of the Securities & Futures Ordinance that make it illegal to "fraudulently or recklessly induce others to invest money," according to the statement.

BOC Hong Kong has said it will make no further comment and it remains to be seen what, if any, comments the various regulators make while the investigation continues.