The Moss Adams accounting firm was sanctioned for not
complying with a bankruptcy trustee's subpoena for documents related to Frederick Darren Berg's Meridian Mortgage
$100 million real estate investment Ponzi scheme. The court ruled that Moss
Adams did not fully comply with a 2010 subpoena...
It's springtime, and Ponzi schemes are in full bloom. Here
is a summary of stories that were reported this month. Please feel free to post
comments about these or other Ponzi schemes that I may have missed. And please
remember that I am just relaying what's in the news, not writing or verifying...
Net winners in a Ponzi scheme - those who have profited -
often get sued to return the profits paid to them. Those who lost money (net
losers) usually don't get sued, unless they were not in "good faith." It is a
bankruptcy trustee or regulatory receiver calling the shots of who does...
I am often asked, "How many Ponzi schemes are there?"
This is a tough question to answer with 100% accuracy because there is no
central registry for all Ponzi scheme cases. The media certainly reports on the
big cases, and occasionally the smaller, local cases, but most schemes go
Normally a trustee or investors sue the banks for funds
lost in a Ponzi scheme. Banks are accused of negligently not monitoring their accounts
for fraud or, worse yet, for aiding and abetting the Ponzi scheme perpetrator's
fraud. Federal regulators like the SEC and CFTC go after the bad guys and...
Last Friday, Florida Governor Rick Scott signed HB 95.
This bill amends § 726.109 of the Florida Statutes by adding this broad defense
to a claim to avoid a charitable contribution as a fraudulent transfer:
"The transfer of a charitable contribution that is received
in good faith by a...
Determined not to hold a securities brokerage firm liable
for fraudulent transfers in a Ponzi scheme case, the Fourth Circuit recently
pushed the boundaries of fraudulent transfer law to affirm the lower court's
dismissal of the trustee's claims against it. Grayson Consulting, Inc. v. Wachovia...