LexisNexis® Legal Newsroom
Backstreet Boys, Bankruptcy Trustee Set For Trial Over $3 Million Claim

A trial date has been set for a $3 million dispute between former boy band the Backstreet Boys (the "Band") and the bankruptcy trustee for the Band's former manager, Lou Pearlman, who is currently serving a 25-year prison sentence for operating a $300 million Ponzi scheme. The Band, which...

March 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for March 2014. The reported stories reflect: 18 guilty pleas or convictions in pending cases; about 60 years of newly imposed sentences for Ponzi schemers; 9 newly discovered schemes involving over 1,000 victims and over $207 million; and an average age of...

Tiger Woods Foundation Faces $500,000 Clawback Suit From Stanford Receiver

The court-appointed receiver overseeing recovery of assets for Allen Stanford's massive $7 billion Ponzi scheme has filed a lawsuit seeking the return of more than $500,000 donated by Stanford to charitable organizations headed by golfer Tiger Woods. Ralph Janvey, the court-appointed receiver, filed...

April 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for April 2014. The reported stories reflect: 9 guilty pleas or convictions in pending cases; over 85 years of newly imposed sentences for Ponzi schemers; 11 newly discovered schemes allegedly involving over 700,000 victims and nearly $1.2 billion; and an average...

Court Suspends TelexFree Bankruptcy, Grants Motion To Transfer Venue To Massachusetts

In a ruling earlier today, a Nevada Bankruptcy court dealt a severe blow to efforts by a consortium of companies accused of operating a massive Ponzi and pyramid scheme by ruling that the pending bankruptcy cases would be suspended and ultimately transferred to Massachusetts, where pending state and...

Hopelessly Confused SLUSA Issues for Ponzi Scheme Victims Following Troice?

As reported in The Ponzi Scheme Blog , the Supreme Court recently issued an important decision further defining the boundaries of SLUSA – the Securities Litigation Uniform Standards Act of 1998. Chadbourne & Park LLP v. Troice , 2014 U.S. LEXIS 1644 (Feb. 26, 2014) [ an enhanced version of...

May 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for May 2014. The reported stories reflect: 9 guilty pleas or convictions in pending cases; over 95 years of newly imposed sentences for Ponzi schemers; at least 9 newly discovered schemes allegedly involving over $96 million; and an average age of 51 for the...

Can You Get Taxed on the Nothingness of a Ponzi Scheme Account?

In a case arising out of the Bernard Madoff Ponzi scheme, the United States Tax Court recently considered whether federal estate tax must be paid on the amount identified on the Madoff account statement at the time of the death of the decedent account holder, or whether no tax is owed because the account...

Eleventh Circuit Decides Important Ponzi Scheme Issues

The Eleventh Circuit issued an opinion this week that has to make receivers happy. See Wiand v. Lee , 2014 U.S. App. LEXIS 10154 (11th Cir. Jun. 2, 2014) [ an enhanced version of this opinion is available to lexis.com subscribers ]. Fraudulent transfer claims are most often the bread and butter of a...

June 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for June 2014. The reported stories reflect: 7 guilty pleas or convictions in pending cases; over 137 years of newly imposed sentences for Ponzi schemers; at least 8 newly discovered schemes allegedly involving over $147 million; and an average age of approximately...

Can a Receiver and a Trustee, Who Are the Same Person, Settle with Himself?

Thomas J. Petters’ $3.65 billion Ponzi scheme has raised all kinds of interesting legal issues, the most recent of which involves the interplay between Thomas Petters’ individual receivership estate and the bankruptcy of Petters’ companies. David Kelley was first appointed as the receiver...

Rothstein Ponzi Scheme: A Settlement, Finally

The intersection of bankruptcy and forfeiture proceedings can lead to considerable fighting over the assets that were once in the possession and control of the perpetrator. The recent filing of a motion to approve a settlement in the hard fought battle over forfeited assets in connection with the Scott...

July 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for July 2014. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 20 years of newly imposed sentences for people involved in Ponzi schemes; at least 8 newly discovered schemes allegedly involving over $440 million and over 25...

The Problem with Multiple Accounts in Ponzi Scheme Clawback Actions

Can different but related account holders offset losses in one account against gains in another account? Can a husband and wife with separate accounts offset losses in one account against gains in the other? When there is a family trust, can the trustee and beneficiary offset gains in the trust account...

August 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for August 2014. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 138 years of newly imposed sentences for people involved in Ponzi schemes; at least 5 newly discovered schemes; and an average age of approximately 55 for the...

September 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for September 2014. The reported stories reflect: 4 guilty pleas or convictions in pending cases; over 239 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 newly discovered schemes involving over 135,000 victims and more than...

October 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for October 2014. The reported stories reflect: 8 guilty pleas or convictions in pending cases; over 158 years of newly imposed sentences for people involved in Ponzi schemes; at least 10 newly discovered schemes involving more $500 million in the aggregate;...

November 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for November 2014. The reported stories reflect: 9 guilty pleas or convictions in pending cases; over 80 years of newly imposed sentences for people involved in Ponzi schemes; at least 5 newly discovered schemes involving more $100 million in the aggregate;...

December 2014 Ponzi Scheme Roundup

Below is a summary of the activity reported for December 2014. The reported stories reflect: 5 guilty pleas or convictions in pending cases; over 112 years of newly imposed sentences for people involved in Ponzi schemes; at least 8 newly discovered schemes involving more $200 million and over 32,000...

January 2015 Ponzi Scheme Roundup

Below is a summary of the activity reported for January 2015. The reported stories reflect: 6 guilty pleas or convictions in pending cases; over 118 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 newly discovered schemes involving more $180 million; and an average...

February 2015 Ponzi Scheme Roundup

Below is a summary of the activity reported for February 2015. The reported stories reflect: 2 guilty pleas or convictions in pending cases; over 64 years of newly imposed sentences for people involved in Ponzi schemes; at least 5 newly discovered schemes involving more $138 million; and an average age...

March 2015 Ponzi Scheme Roundup

Below is a summary of the activity reported for March 2015. The reported stories reflect: 4 guilty pleas or convictions in pending cases; over 49 years of newly imposed sentences for people involved in Ponzi schemes; a possible new massive Ponzi scheme involving $16 billion; and an average age of approximately...

April 2015 Ponzi Scheme Roundup

Below is a summary of the activity reported for April 2015. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 105 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 new Ponzi schemes involving nearly $100 million; and an average age of...

May 2015 Ponzi Scheme Roundup

Below is a summary of the activity reported for May 2015. The reported stories reflect: 7 guilty pleas or convictions in pending cases; over 62 years of newly imposed sentences for people involved in Ponzi schemes; at least 16 new Ponzi schemes involving over $130 million; and an average age of approximately...

July 2015 Ponzi Scheme Roundup

Below is a summary of the activity reported for July 2015. The reported stories reflect: 10 guilty pleas or convictions in pending cases; over 166 years of newly imposed sentences for people involved in Ponzi schemes; at least 11 new Ponzi schemes involving over $112 million; and an average age of approximately...