DBSI Trustee Launches Attack On Hundreds Of Brokers

Law360, New York (August 24, 2011, 2:14 PM EDT) -- A trustee seeking recovery for investors in defunct real estate investment firm DBSI Inc. sued nearly 100 financial firms in Delaware on Monday, alleging they were complicit in a $500 million Ponzi scheme that landed the company in bankruptcy court.

James R. Zazzali, the trustee of the private actions trust representing the interests of DBSI creditors, listed 500 John Doe defendants in the complaint, in addition to the broker-dealer firms. The corporate defendants include AIG Financial Advisors Inc., First Financial Equity Corp., UBS Financial Services Inc....
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