January 2019

Associated Bank Successfully Defends Against $160M Ponzi Scheme Allegations

United States - Minnesota

Associated Bank successfully defended against allegations by the receiver for entities involved in a Ponzi scheme that the bank aided the Ponzi scheme by maintaining checking and savings accounts for the businesses for a short period of time. The receiver’s claim against the bank was approximately $160 million. Our firm obtained summary judgment in Associated Bank’s favor in federal district court, mainly on the ground that the bank lacked actual knowledge that its customers were engaged in fraud or that the bank was aiding the fraud in any way. The victory was preserved on the receiver’s appeal to the Eighth Circuit. 

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