Bank Not Liable For Client's ERISA Fraud, 6th Circ. Says

Law360, New York (June 8, 2012, 4:48 PM EDT) -- Former clients of a convicted investment adviser who bilked employee-benefits plans that he managed out of millions of dollars and his bankrupt company can't sue Regions Bank for helping facilitate the fraud, because the bank wasn't their fiduciary, the Sixth Circuit ruled Friday.

The bankruptcy trustee of third-party employee benefits administration company 1Point Solutions LLC and its owner, Barry Stokes, can't hold Regions Financial Corp.'s Regions Bank accountable for Stokes' fraud because the bank only collected fees from 1Point's accounts and otherwise had no role in...
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