K&S Partnership v. Continental Bank

What level of knowledge of a fraudulent scheme can lead to secondary liability by a third party when that third party's assistance was used to perpetrate the fraud?

more+
less-

Penn Square bank arranged financing for high-risk energy development projects, including Eagle Petroleum Company. Plaintiffs had invested in Eagle's financing, through Penn Square Bank. Defendant Continental Bank, a large commercial bank, had also participated in financing Eagle's operations. Eagle went bankrupt and Penn Square was taken over by the FDIC. Plaintiffs sued Continental, alleging that Continental had helped fabricate the misrepresentations that Eagle had made to them in violations of securities laws. Continental had not had contact with Plaintiffs before the suit.

Case and case summary are available at: http://www.mlmlegal.com/legal-cases/K&SPartnership_v_ContinentalBank.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:Federal, 8th Circuit, Arkansas | United States

Reporters on Deadline

CONNECT

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


Follow Babener & Associates: