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Rare Legal Victories against Banks Highlight Difficulties in Suing over Ponzi Schemes
By Brian Monroe
printIn the legal wrangling that inevitably follows the collapse of Ponzi schemes, banks often escape liability. But in at least three lawsuits settled against two banks in the past year, financial institutions have been asked to pay up, and substantially. The lawsuits, against Cherry Hill, NJ-based TD Bank and Coral Gables, FL-based Gibraltar Private Bank & Trust, could garner some $247 million for plaintiffs who allege that the institutions knowingly facilitated a $1 billion fraud by convicted former Florida lawyer Scott Rothstein. The unusual results make the lawsuits "landmark cases," according to an attorney representing investors defrauded by a Ponzi...
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JPMorgan Chase is likely to lose its legal fight with the U.S. Treasury Department over whether it must turn over documents related to convicted Ponzi schemer Bernard Madoff, say former government officials.
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