11th Circ. Nixes Suit Claiming BofA Aided Ponzi Scheme

Law360, New York (January 11, 2012, 8:10 PM EST) -- The Eleventh Circuit on Wednesday affirmed a lower court’s dismissal of a proposed class action by investors accusing Bank of America NA of abetting convicted Ponzi schemer Beau Diamond's $37 million fraud by ignoring unusual transactions in his accounts with the bank.

A three-judge panel said in an unpublished opinion that the plaintiffs, a proposed class of investors from Florida who had lost their investments in Diamond’s scheme, had not sufficiently proved that the bank had actual knowledge of his fraudulent activities, saying Florida law does...
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