Plaintiffs victimized by a bank customer often look to the bank for relief rather than the true wrongdoer, which may be insolvent, facing criminal charge, or no longer accessible. We have vast experience defending financial institutions targeted solely because money flowed through their customer’s account, including claims involving fraud, Ponzi schemes, theft, and other intentional wrongdoing. Recent representative matters include:
- Conducted internal investigation and currently representing large financial institution in federal litigation arising as a result of banking relationship with customer convicted of operating a multibillion dollar ponzi scheme. Successfully avoided criminal charges and other enforcement action against bank, and assisted in securing dismissal of several lawsuits, and avoiding others, related to claims by victims of ponzi scheme.
- Defense of claims arising from bank’s borrower perpetrating fraud (theft of loan proceeds) in conjunction with residential loan closings. Claims alleging the existence of a fiduciary escrow account, aiding and abetting fraud and theft.
- Conducted an internal investigation regarding loan fraud perpetrated by thirdparty loan brokers and escrow company employees. Successfully pursued multiple avenues of recovery on behalf of the victim bank, including indemnification demands under the brokerage agreement that led to multiple settlements without litigation, pursuit of a criminal restitution award, and litigation against entities that employed one of the coconspirators central to the fraudulent loan closings. Efforts in total resulted in a net recovery to the bank in excess of $3 million, plus restitution payments from defendants criminally convicted of the real estate fraud scheme.
- Defense of claims against bank arising from access to trust funds by the power of attorney to an elderly bank customer, with the power of attorney found guilty of criminal embezzlement, including interfacing with law enforcement.