Republic Agrees to Pay Investors $606 Million
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Republic New York Corp., a subsidiary of HSBC Holdings, pleaded guilty to helping financier Martin Armstrong swindle Japanese investors and will pay them $606 million, the largest corporate criminal restitution ever ordered by a U.S. court.
The charges against the unit of Britain’s No. 1 banking company stem from Republic’s involvement with Armstrong and his company, Princeton Economics International Inc.
Armstrong was accused of cheating Japanese investors out of about $1 billion in the early 1990s. He’s in jail for failing to surrender assets.
HSBC has set aside $655 million to settle claims brought by the investors.
American depositary receipts of HSBC rose $1.03 to $61.60 on the NYSE.
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