NewPoint Receiver To Get $4M In BofA Settlement

Law360, New York (January 31, 2012, 10:17 PM EST) -- The receiver recovering funds for victims of an alleged Ponzi scheme run by the head of NewPoint Financial Services Inc. said Tuesday that he reached a settlement with Bank of America NA that will allow him to recover more than half of the $6.86 million he sought to claw back from the bank.

Receiver James H. Donell sued BofA in September, asking for about $2.86 million the bank recovered from a loan made to NewPoint President John Farahi, who is accused of bilking investors out of...
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