$8.9M Ponzi Scheme Victims Can't Sue BofA, 9th Circ. Says

Law360, New York (March 3, 2016, 2:41 PM EST) -- Investors duped into taking out fraudulent mortgage loans to invest in an $8.9 million Ponzi scheme don't have racketeering claims against Bank of America and another lender, the Ninth Circuit ruled on Wednesday, saying the lenders didn't cause the investors' losses.

The 17 investors claimed the bank violated the Racketeer Influenced and Corrupt Organizations Act by aiding Kaveh Vahedi's mortgage fraud and Ponzi schemes. They claimed the banks called him a “carefully screened” business partner and ignored fraudulent loan applications he filed on their behalf. But...
To view the full article, register now.

Documents

Related

Sections

Case Information

Case Title

Maria Gomez, et al v. Bank of America NA, et al


Case Number

14-55129

Court

Appellate - 9th Circuit

Nature of Suit

3470 Civil (Rico)

Date Filed

January 22, 2014

Law Firms

Companies

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.