Last Friday, a federal judge in New York dismissed a suit brought by investors who lost money in a Ponzi Scheme. The investors alleged JP Morgan Chase & Co. as well as several other banks enabled the $40 million Ponzi orchestrated by Philip Barry. The judge found the suit met the requirements for dismissal under the Securities Litigation Uniform Standards Act.
The investors alleged Barry used bank accounts housed at JPMorgan, M&T Bank Corp., HSBC North America NA. and Commerce Bank, later acquired by TD Bank., to conduct the scheme and that the banks had a fiduciary duty to investors to stop him. However, the federal judge found the suit, which was first brought in state court, and involved misrepresentations in connection with the purchase, sale or holding of covered securities cannot be brought under state law and hence the dismissal.
If you have lost money as a result of this or any other ponzi scheme, contact the experienced securities fraud attorneys at Colling Gilbert Wright & Carter.