'Mini-Madoff' Investors Ask 2nd. Circ. To Revive BofA Suit

Law360, New York (January 12, 2012, 4:38 PM EST) -- Investors who lost money to a Ponzi scheme run by “mini-Madoff” Nicholas Cosmo asked the Second Circuit on Thursday to reopen their class action against Bank of America NA, arguing the bank aided the alleged $400 million scam.

The bank, which handled Cosmo's money, went beyond ignoring red flags — it ignored a “flashing stop light” pointing to Cosmo's scheme, which ended in 2009, attorney Susan K. Alexander of Robbins Geller Rudman & Dowd LLP said at oral arguments.

Alexander wants the appeals court to reverse...
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