Bernie Madoff. Allen Stanford. Tom Petters. These and others have a few things in common: they are convicted Ponzi schemers, and they used bank accounts to deposit and pay out the proceeds of their frauds. Our panel discussed how bank accounts and banking relationships are used in a Ponzi scheme, described the immediate aftermath of a Ponzi scheme collapse (appointment of a receiver, regulatory investigations, civil lawsuits), and discussed various civil and regulatory actions that a bank may face for having provided the banking services used in the Ponzi scheme, including fraudulent transfer actions in bankruptcy court, Uniform Fiduciaries Act and other civil claims by victims, and regulatory actions by various agencies.
Beth Forsythe, Partner, Dorsey & Whitney LLP
Peggy Hunt, Partner, Dorsey & Whitney LLP
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