News & Analysis as of

Financial Institutions Ponzi Scheme

A&O Shearman

Eighth Circuit Reverses Jury Verdict For Aiding And Abetting Ponzi Scheme, Holding That In Pari Delicto Defense Barred Bankruptcy...

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On September 12, 2024, the United States Court of Appeals for the Eighth Circuit reversed a trial court decision that had rejected a bank’s assertion of the in pari delicto defense to aiding and abetting claims brought by the...more

Harris Beach PLLC

Cryptocurrency: In the Face of Increased Enforcement, Be Prepared

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This summer was a busy one for cryptocurrency regulators, with aggressive actions potentially signaling an increase in consumer protection compliance activity. In August alone, the New York Department of Financial Services...more

McGuireWoods LLP

Ponzi Perspectives: 2021 Year-End Roundup

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McGuireWoods’ Ponzi Litigation team launched its Ponzi Perspectives blog in early 2021 to track key decisions and new cases in Ponzi civil and criminal litigation. Ponzi Perspectives focuses on on cases and decisions that...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

McGuireWoods LLP

11th Circuit Curtails Receivers’ Ability to Bring Ponzi Scheme-Related Claims Against Banks

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On June 1, 2020, the U.S. Court of Appeals for the 11th Circuit issued Isaiah v. JPMorgan Chase Bank, N.A., a precedential opinion that draws sharp limits on court-appointed receivers’ ability to bring claims against...more

Ballard Spahr LLP

Alleged BSA Violations Do Not Support Civil Negligence/Fraud Claims – Again

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As we have blogged, courts have held that financial institutions generally do not owe a duty of care to a noncustomer and that no special duty of care arises from the duties and obligations set forth in the Bank Secrecy Act...more

UB Greensfelder LLP

Ohio Supreme Court Clarifies the Definition of “Participating in or Aiding” Securities Fraud

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In a recent landmark decision, the Ohio Supreme Court declared that R.C. 1707.43 does not impose joint and several liability on a custodian of a self-directed individual retirement account (IRA) that purchased illegal...more

Proskauer - Blockchain and the Law

BitConnect Promoters Targeted in Class Action Suits, Twice in One Week

BitConnect International, PLC had a somewhat unique business model, even for an industry known for its unconventional nature. On its face, BitConnect functioned as an exchange. However, the real purpose of the platform, and...more

Sheppard Mullin Richter & Hampton LLP

The Numbers Don’t Lie: The SEC Pursues a More Streamlined Enforcement Agenda

One of the most eye-catching items in the recently released 2017 Annual Report of the Enforcement Division of the Securities and Exchange Commission (SEC or the Commission) is the significant decline in enforcement activity...more

Robins Kaplan LLP

Your Daily Dose of Financial News

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Late last week, financial services company Raymond James agreed to resolve allegations of conspiring with the owner of several VT ski resorts (and others) in a Ponzi scheme targeting foreign investors through the EB-5...more

Robins Kaplan LLP

Your daily dose of financial news - The Brief – 9.21.16

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Testifying before the Senate Banking Committee yesterday, Wells Fargo CEO John Stumpf admitted that the illegal sham-account-creation activity at the heart of its recent SEC fine may have begun earlier than first reported....more

Robins Kaplan LLP

Your daily dose of financial news - The Brief – 7.18.16

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William Ackman’s multi-year effort to expose Herbalife as a Ponzi scheme (and make good on his massive short of its stock) saw something of a moral victory last week, with the FTC imposing big-time sanctions ($200 million in...more

Robins Kaplan LLP

Your daily dose of financial news - The Brief – 7.7.16

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Disgraced Wall Street scion Andrew Casperson has pleaded guilty to federal wire and security fraud charges related to his Ponzi-like scheme in which he bilked nearly $40 million from friends and a private foundation....more

Robins Kaplan LLP

Your daily dose of financial news - The Brief – 6.15.16

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A nasty May jobs report and fears about China’s markets have probably done in any plans the Fed had to raise rates in June [though maybe it shouldn’t wait much longer]. Here are the 5 things we should be watching when the...more

Robins Kaplan LLP

Your daily dose of financial news The Brief – 5.31.16

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A lawsuit over an alleged Ponzi scheme involving a fund pushed by MetLife agents is raising hard questions for the insurance giant over the reaches of corporate liability...more

Robins Kaplan LLP

Your daily dose of financial news The Brief – 2.2.16

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News has emerged from China that online finance company Ezubao, a purported peer-to-peer lender, was running a Ponzi scheme that “bilked investors out of more than $7.6 billion, spent lavishly on gifts and salaries and buried...more

Robins Kaplan LLP

Your daily dose of financial news The Brief – 1.8.16

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Some broader perspective on the latest round of plunging Chinese markets, namely, the harsh disruption of what had been touted by President Xi Jinping mere weeks ago as “a new era of economic management [with] policy...more

Perkins Coie

Bitcoin Week in Review 09.19.15 – 09.25.15

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Below is a summary of some of the significant legal and regulatory actions that occurred over the past week. This alert is not intended to be a comprehensive list of all such developments, but rather a selection of...more

Katten Muchin Rosenman LLP

Bridging the Week - April 2015 #2

IOSCO Seeks Views on Business Continuity and Recovery Planning by Trading Venues and Intermediaries; NYS Warns on Third-Party Service Providers - The International Organization of Securities Commissions issued two...more

Spilman Thomas & Battle, PLLC

Lessons From a $100 Million Payout

Last fall, I wrote an article for Carolina Banker magazine excitingly titled “Bank Liability to Non-Customers in a Ponzi Scheme.” The crux of it concerns the potential liability to banks in Ponzi schemes and the precautions...more

Spilman Thomas & Battle, PLLC

Bank Liability to Non-Customers in a Ponzi Scheme

The morning news reports flashes a report that your customer was actually a Ponzi scheme and defrauded numerous people. Of course, this is terrible news for the innocent victims, but, you ask yourself, could my bank be...more

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