Settled an alleged $225 million fraud class action in duplicitous lawyer's plans to defraud investor

November 15, 2015

Representation of a financial institution in a class action lawsuit filed by foreign investors related to an alleged $225 million fraud scheme orchestrated by an attorney who allegedly deposited the investment funds into various attorney trust accounts with bank and proceeded to use those funds to pay unrelated premium obligations or to pay out money to other investors and participants in the scheme. Plaintiffs, purporting to represent all 1,000+ investors, alleged that the bank failed to properly investigate the nature of the trust accounts, and failed to properly monitor and investigate the money movement between the accounts. After 18 months of litigation, the case settled on terms favorable for the client.
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