2nd Circ. Backs Ex-Credit Bancorp CEO's $21M Ponzi Fine

Law360, New York (November 7, 2012, 3:50 PM EST) -- Former Credit Bancorp Ltd. CEO Richard Blech, convicted for his role in a Ponzi scheme that brought down the bank, lost an appeal Wednesday in the Second Circuit challenging a $21 million civil penalty in a related U.S. Securities and Exchange Commission case.

A three-judge panel affirmed a March 2011 judgment in New York federal court ordering Blech to disgorge $11 million and pay $10 million in interest. That penalty came on top of an $18 million criminal fine in 2005 against Blech, who was sentenced to...
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