Traders Aren't Liable For Ponzi Losses: 5th Circ.

Law360, New York (September 16, 2011, 5:15 PM EDT) -- The Fifth Circuit on Friday affirmed a lower court's dismissal of an investor suit against futures commission merchants who executed trades on behalf of former Renaissance Asset Management LLC operator and convicted Ponzi schemer Anthony Ramunno.

In a published de novo opinion, a panel ruled that the merchants couldn't have aided and abetted Ramunno in violating the Commodities Exchange Act because they had no knowledge of the ultimate purpose of his trades, which he made using his personal account.

"The merchants had no reason to know...
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