Wednesday 20 January 2010
Al-Khorafi Claims Sarasin Provided ‘Negligent’ Advice
Rafed Al-Khorafi, chairman of the Kuwait-based A.M. Al-Khorafi business group, is seeking $225 million from Bank Sarasin & Cie., alleging in a lawsuit that the Rabobank Groep NV unit provided “negligent investment advice.”
Al-Khorafi and his family lost about $75 million after Bank Sarasin-Alpen (ME) Ltd. and its parent recommended they invest in complex financial products instead of capital-protected instruments as they requested, according to a claim filed Dec. 9 in the court of the Dubai International Financial Center and obtained by Bloomberg News. The claim seeks triple damages because of the alleged negligence.
Al-Khorafi said he borrowed funds to invest in capital- protected products that would provide income to meet interest payments on the loans and generate a surplus. Instead, the bank recommended interest-bearing products that didn’t guarantee the capital, according to the claim. All of the products were issued and distributed by Rabobank and Sarasin, Al-Khorafi alleged.
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