Banks Duck RICO Claims In $40M Rothstein Ponzi Suit

Law360, New York (May 8, 2012, 4:32 PM EDT) -- A Florida federal judge on Tuesday dismissed racketeering claims against two banks that investors say helped convicted Ponzi schemer Scott Rothstein bilk them out of $40 million, ruling racketeering claims can't be brought for securities fraud.

U.S. District Judge James Cohn said that the Private Securities Litigation Reform Act bars Racketeer Influenced and Corrupt Organization Act claims whose underlying misconduct could be brought as an action for securities fraud. He also dismissed a number of state law claims against TD Bank NA and Gibraltar Private Bank...
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