Guidry v. Bank of LaPlace , 661 So.2d 1052 (1996)

Guidry v. Bank of LaPlace

more+
less-

The Court of Appeals held that a bank couldn’t be held liable for aiding and abetting a pyramid scheme operated by one of its customers, absent intentional conduct on behalf of the bank. The bank customer sold interests in vacation packages that were financed by the future sales of vacation packages, with the proceeds used to pay off the earlier investors. The bank paid the checks used in the scheme. But because the bank customer intentionally operated the scheme without the knowledge of the illicit nature by the bank, it could not be held liable for aiding and abetting the scheme.

The case and case summary are available at: http://www.mlmlegal.com/legal-cases/Guidry_v_BankofLaPlace.php

LOADING PDF: If there are any problems, click here to download the file.

Published In: Civil Procedure Updates, MLM / Direct Sales Updates, MLM Consulting / Network Marketing Updates

Reference Info:State, 5th Circuit, Louisiana | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Babener & Associates | Attorney Advertising

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »

CONNECT

Welcome to MLM Legal - a valuable resource to the Multi-Level Marketing and Direct Sales Industry. ... View Profile »


Follow Babener & Associates:

Reporters on Deadline