Bloomberg - HSBC ex-employee wants bonus, bank sues him for time wasting

A former HSBC banker filed a lawsuit after being told he couldn’t have his bonus because he helped clients cheat on their taxes. The bank responded by counter-suing him for wasting its time.

Bloomberg News reports that Rajesh Parmar is suing HSBC for more than $2.4m in unpaid bonuses and damages, accusing it of “arbitrary, perverse and capricious conduct” when it told him in 2016 that it would not pay his bonus, according to his lawsuit, which was filed in September and released this week. Parmar was laid off in 2012.

The bank says Parmar, who headed an HSBC Private Bank business unit for south Asia, helped Sanjay Sethi - a former client - evade taxes. In 2013, Sethi pleaded guilty to hiding as much as $4.7 million from the U.S. Internal Revenue Service.

HSBC says in court filings that Parmar “was aware of Mr. Sethi’s interest in establishing a sham trust to conceal his ownership of certain funds so as to evade tax in the U.S.” and assisted him with this. He also helped other U.S. clients open undeclared accounts in Switzerland to dodge U.S. taxes, the bank says.

The bank is counter-suing him, saying he “wasted management time.”

Parmar says in his filings that the bank didn’t take any action against him as a result of its tax probe and neither has anyone else. 

Hit the link below to access the complete Bloomberg News article:

HSBC Calls Banker's $2.4 Million Bonus Suit a Waste of Time

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