News & Analysis as of

Fraud Aiding and Abetting

Fraud is the making of false representations or engaging in deceptive behavior in order to unlawfully secure financial or personal gain. 
Morris James LLP

Court of Chancery Dismisses Aiding And Abetting Fraud Claim Against Corporate Officers And Directors On Grounds That A Corporation...

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Urvan v. AMMO, Inc., Consol. C.A. No. 2023-0470 PRW (Del. Ch. Feb. 27, 2024, corrected Mar. 14, 2024) - It is an axiom of Delaware law that a corporation acts through its human agents. This principle informs the causes of...more

Nutter McClennen & Fish LLP

Nutter Securities Enforcement Update: March 1, 2024

The Nutter Securities Enforcement Update is a periodic update of noteworthy recent securities enforcement activity, settlements, decisions, and charges. We provide brief summaries that highlight recent enforcement action...more

McGuireWoods LLP

Notable Litigation - November 2023

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Notable litigation filed during November 2023 includes: (1) BB & MB WDF, LLC v. Seare, et al.; (2) Day v. Heppner, et al.; (3) Scura v. Heppner, et al.; and (4) Commodity Futures Trading Comm’n v. Young, et al....more

Morrison & Foerster LLP

Top 5 SEC Developments (October 2023)

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Each month, we publish a roundup of the most important SEC enforcement developments for busy in-house lawyers and compliance professionals. This month we examine: • Fraud and internal control failure charges against...more

Winstead PC

Court Granted Mandamus Relief To Vacate A Temporary Restraining Order In A Fiduciary Case

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In In re Sanchez, a plaintiff filed suit against a defendant for (1) conspiracy; (2) fraud and conspiracy to commit fraud; (3) aiding and abetting/conspiracy; (4) breach of fiduciary duty; and (5) Texas Theft Liability Act...more

McGuireWoods LLP

Pennsylvania Supreme Court Recognizes a New Cause of Action Against Those Who Aid and Abet Fraud

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With a new decision settling the issue, businesses run the risk of being held liable for the conduct of their customers with the potential for increased Ponzi scheme related litigation following the Pennsylvania Supreme...more

A&O Shearman

Georgia District Court Grants Motion To Dismiss Class Action Against Investment Bank For Aiding And Abetting Fraud, Finding That...

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On August 17, 2022, Judge Steven D. Grimberg of the United States District Court for the Northern District of Georgia granted a motion to dismiss a putative class action alleging an investment bank (the “Company”), certain of...more

King & Spalding

District of Maryland Holds that “Specific Evidence” Must be Presented to Prove Lender Knowledge of Loan Applicant Fraudulent...

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On April 1, 2022, the U.S. District Court for the District of Maryland granted in part and denied in part motions for summary judgment brought by lenders on claims against them for alleged participation in fraud by a borrower...more

McGuireWoods LLP

New Complaint – Damian, as Receiver of Today’s Growth Consultant, Inc. v. SmithAmundsen, LLC

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On May 27, 2022, Plaintiff Melanie E. Damian, in her capacity as the Court-Appointed Receiver for Today’s Growth Consultant, Inc. d/b/a The Income Store (“TGC”) (the “Receiver”) filed a complaint against Defendant...more

Farrell Fritz, P.C.

A Loan Is a Loan Is a Loan, Except When It’s Equity

Farrell Fritz, P.C. on

Disputes over capital accounts and equity percentages are frequent fodder for business divorce litigation — especially in LLCs without operating agreements. Exemplars previously treated on this blog include Chiu v Chiu, an...more

Venable LLP

Update: Judge Allows Most of Receiver’s Claims Against Wells Fargo for Involvement with Negative Option Marketers to Proceed

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A few weeks ago, we wrote an article discussing two enforcement actions by the Federal Trade Commission in the Central and Southern Districts of California that highlighted the risks to payment processors and financial...more

McGuireWoods LLP

New Complaint – Tu Le et al. v. Prestige Community Credit Union

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Tu Le et al. v. Prestige Community Credit Union, filed in the United States District Court for the Central District of California on February 18, 2022, is the second putative class action filed in connection with a...more

McGuireWoods LLP

Illinois Federal Court Carves Up Plaintiffs’ Ponzi Scheme Claims For Lack of Actual Knowledge or Bad Faith

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Backed by unrealistically ambitious owners, well-intentioned business ideas that fail to meet expectations or become unsustainable regrettably often become full-fledged Ponzi schemes. Today’s Growth Consultant, Inc. (“TGC”)...more

McGuireWoods LLP

Chang, et. al. v. Interactive Brokers LLC

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Chang, et. al. v. Interactive Brokers LLC (“IB”) was filed in the Northern District of California on August 2, 2021. The Complaint seeks civil damages for claims of aiding and abetting fraud, aiding and abetting breach of...more

McGuireWoods LLP

Minnesota Court Untangles Who Owns What Claim in the Fallout of a Ponzi Scheme

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The collapse of a Ponzi scheme usually follows a familiar pattern. When the scheme is exposed, the company created by the schemer—which is usually little more than a sham entity—is placed into receivership or declares...more

Gray Reed

Private Equity Fund May Be Liable for Fraud, Aiding and Abetting Fraud and Conspiracy in $295 Million Sale of Portfolio Company...

Gray Reed on

In Agspring Holdco, LLC, et al v. NGP X US Holdings, L.P., et al, the Delaware Court of Chancery (the “Court”) denied a motion to dismiss claims of fraud, aiding and abetting fraud and conspiracy to commit fraud against the...more

Goodwin

Ninth Circuit Holds Loss Causation May Be Predicated on Information Potentially Available Under Freedom of Information Act

Goodwin on

Ninth Circuit Holds Loss Causation May Be Predicated on Information Potentially Available Under Freedom of Information Act; D.C. Circuit Upholds FINRA’s Permanent Ban of Broker Accused of Misconduct After Finding SCOTUS...more

Butler Snow LLP

Federal judge provides reminder that fraudulent mass tort litigation can carry criminal, as well as civil, consequences

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Recently, a Mississippi federal judge provided a heartening reminder that, while it may seem all too often ignored, fraud in the mass tort context can carry serious—indeed, criminal—consequences. As we discuss below, victims...more

Hinshaw & Culbertson LLP

Seventh Circuit Affirms: Attorney Personally Liable for Aiding and Abetting Mortgage Fraud Scheme

Fifth Third Mortgage Co. v. Kaufman, No. 18-3295 (7th Cir. Aug. 9, 2019) - Brief Summary - The Seventh Circuit affirmed a ruling that an attorney was personally liable for aiding and abetting a mortgage fraud scheme....more

Winstead PC

Texas Fiduciary Litigation Update

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David F. Johnson presented his paper on “Litigation Update, Including Fiduciary Issues” to the Texas Bankers Association’s Legal Conference in Austin, Texas, on April 5, 2018. This presentation covered recent Texas precedent...more

Akin Gump Strauss Hauer & Feld LLP

Federal Court Upholds FERC’s Expansive Use of Anti-Market Manipulation Rule in Power Market “Gaming” Case

On March 30, 2018, the U.S. District Court for the Southern District of Ohio issued an order substantially denying defendants’ Motion to Dismiss the Federal Energy Regulatory Commission’s (FERC or the “Commission”) Complaint...more

Winstead PC

Court Affirmed Judgment Against Trust Settlor Who Raised Fraud And Other Related Claims Against An Insurance Agent

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In Jessen v. Duvall, an investor who established trusts to purchase life insurance policies sued an insurance agent for tort claims, including fraud, conspiracy, and aiding and abetting breach of fiduciary duty based on the...more

Seyfarth Shaw LLP

Popular Insulated Cup Manufacturer In Hot Water Over Alleged Trade Secret Misappropriation

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Tervis Tumbler Company, the maker of the infamous insulated tumblers, has found itself in hot water with a former supplier, Trinity Graphic. ...more

Foley & Lardner LLP

Florida Banks: Beware of Eleventh Circuit Decision Implications

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Banks beware: At the very least in Florida, you may be liable for negligence and “aiding and abetting fraud” to non-customers for trust funds deposited by a bank customer that were obtained by the customer through fraud,...more

Perkins Coie

What’s Happening in Delaware M&A – Summer 2016

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This update provides a summary of recent Delaware caselaw and statutory developments concerning mergers and acquisitions, including new cases regarding appraisal rights, fraud claims and fiduciary duty and deal process...more

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