9th Circ. Clears JPMorgan In Bank's $130M Ponzi Scheme

Law360, Los Angeles (March 20, 2012, 5:15 PM EDT) -- The Ninth Circuit on Tuesday affirmed the dismissal of two consolidated class actions alleging Washington Mutual Inc. aided a $130 million Ponzi scheme by Millennium Bank, saying the plaintiffs failed to exhaust Federal Deposit Insurance Corp. administrative remedies against its successor, defendant JPMorgan Chase Bank NA.

“[The Financial Institutions Reform, Recovery and Enforcement Act’s] jurisdictional bar applies to claims asserted against a purchasing bank when the claim is based on the conduct of the failed institution,” Circuit Judge Carlos F. Lucero said in the opinion Tuesday....
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