SINGAPORE/TAIPEI, April 19 (Reuters) - A Taiwan prosecutor has issued an arrest warrant for a Deutsche Bank (DBKGn.DE) executive embroiled in a dispute between the bank and a well-known Taiwanese scientist over $48 million in investment losses.
Deutsche and Chang Tse Wen, the inventor of asthma drug Xolair, sued each other in Singapore’s High Court in 2009 over the investment losses incurred by the scientist, starting in late 2007.
Chang has also lodged a complaint against Deutsche relationship manager Johnny Wan Fan Ting in Taipei .
“We have issued an arrest warrant against Wan Fan Ting because Chang Tse Wen filed the case against Wan and Wan never answered requests to court hearings, and prosecutors don’t know where he is,” a spokesperson for the Taipei District Court Prosecutor’s Office told Reuters on Tuesday.
A copy of the arrest warrant, dated Feb 24, 2011, was presented by Chang’s attorney during a court hearing in Singapore on Friday.
The case is being heard in Singapore because the city-state is the “booking centre” for Chang’s transactions with the bank.
Chang is based in Taiwan while Wan works out of Hong Kong.
Deutsche Bank said Wan was not aware an arrest warrant had been issued against him.
“Deutsche Bank’s position is that this is a case where a sophisticated client made his own investment decisions. The bank believes that the client’s claims have no merit and it acted within its rights in demanding monies owed by the client,” a spokeswoman for the German bank said.
Deutsche had sued Chang for $1.8 million to cover investment losses that he allegedly incurred. The scientist has in turn alleged misrepresentation by the bank, which led to his loss of over $48 million.
According to papers filed in court, Chang had purchased financial products called “accumulators” in late 2007 to bet on price movements in the shares of Citigroup , UBS , Societe Generale and Washington Mutual.
Accumulators — nicknamed “I kill you later” by disgrunted private bank clients — oblige investors to buy shares at a fixed price, usually at a discount to prevailing market rates, at regular intervals. (Reporting by Walter Sim in Singapore and Argin Chang in Taipei; Editing by Lincoln Feast)