Questar Beats Mich. Action Over $250M Ponzi Scheme

Law360, New York (February 28, 2011, 11:16 PM EST) -- A Michigan federal judge on Monday tossed a class action that tried to hold Questar Capital Corp. accountable for a $250 million Ponzi scheme that allegedly involved one of its former brokers.

The plaintiffs did not make an adequate case that Questar participated in the alleged fraud, Judge Julian Abele Cook Jr. of the U.S. District Court for the Eastern District of Michigan said in granting Questar's motion to dismiss.

The order, which dismissed claims against Questar with prejudice, ends the case. The ex-broker, Frank Bluestein,...
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