BofA, Fifth Third Freed From Suit Over $70M Concord Fraud

Law360, New York (January 4, 2013, 5:42 PM EST) -- Bank of America NA and Fifth Third Bank can't be held responsible for a $70 million fraud by executives of Concord Capital Management LLC because the insurance premium finance company benefited from the scheme, a New York appeals court ruled Thursday.

The in pari delicto doctrine, which prevents an admitted wrongdoer from going after an accomplice who was merely negligent, precluded Concord's suit, a five-judge appeals court panel in Manhattan said. And the adverse interest exception to the doctrine, which applies when an agent of the...
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