Troutman Sanders may have some explaining to do, if it doesn’t want to hand over almost $75 million to HSBC Bank USA.
Last week, HSBC filed suit against the Atlanta-based law firm, claiming it acted negligently in advising it on a $100-million securities-backed loan to Hassan Nemazee, who at one time was a wealthy businessman. The bank says a former partner at Troutman Sanders, Robert Chanis, was negligent and breached fiduciary duty to HSBC when he advised the bank to approve Nemazee’s loan. Nemazee, who hails from a wealthy shipping family, pleaded guilty in 2010 to stealing nearly $300 million from HSBC, Citigroup Inc. and Bank of America Corp. He is currently serving a 12-and-a-half year prison sentence for bank and wire fraud.