A former senior vice president at Israel Discount Bank of New York (IDB) is suing the company, alleging racial and religious discrimination because he does not have Jewish origin. Paul Chau, an American manager of Chinese descent, claimed he endured systematic discrimination throughout his nine-year tenure, ultimately leading to his termination despite his good performance.
In the lawsuit filed Monday in Manhattan federal court, Chau said that, as head of the middle-market banking group, he led the bank to billions in loan growth, making it one of the top revenue-generating categories in IDB’s commercial banking.
Despite that, he said he received fewer resources than his Jewish peers, was assigned higher budget targets, and was denied bonuses and promotion opportunities.
Chau claimed he was the only Asian mid-level manager at the bank after all non-Jewish employees were gradually dismissed and replaced by "white Jewish staff." In his complaint Chau recounted an instance in which a bank manager allegedly barred loans to Korean-owned companies, claiming that “Koreans can’t be trusted.” He said that he reported the incident to management, but the person behind the policy didn’t face backlash from the bank.
In September 2023, Chau raised concerns with management about discriminatory treatment against him compared to his Jewish, white peers after he was told he was a top candidate for the Chief Lending Officer (CLO) role.
According to the lawsuit, IDB CEO Ziv Biron sent him for an external executive assessment, which concluded that Chau was highly suited for the position and its leadership requirements. Less than two months later, however, he was unexpectedly terminated in November 2023 due to “restructuring” — a move he claimed was a cover for a discrimination-based dismissal.
Chau claimed he was the only manager dismissed during this “restructuring,” while his team was assigned to a less experienced, underperforming Jewish manager. He provided metrics showing other, less productive bank units with significantly less experienced managers – even some with disciplinary records – whom he said received preferential treatment solely because they were Jewish.
He noted that Asians were underrepresented in bank leadership and the discriminatory policies extended to recruitment, discipline and terminations.
Chau is seeking at least $750,000 in damages, including $250,000 for emotional distress and $500,000 in punitive damages, as well as reimbursement for lost wages, benefits and future income loss. He claimed that his termination not only caused financial harm but also damaged his reputation and inflicted significant emotional distress.
Israel Discount Bank of New York has not yet commented on the allegations.
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