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Banks and Brokerage firms can be liable for aiding and abetting ponzi schemes
in Ponzi Scheme
By Scott L. Starr Ponzi schemers rarely have the ability to carry out their nefarious conduct alone; instead, they need the assistance of brokers and banks to handle a variety of financial transactions. Under some circumstances, these banks and brokerage firms may ultimately be found liable for aiding and abetting the Ponzi scheme. By way of example, Starr Austen & Miller a few years back represented a large group of Ohio investors who had invested in excess of $30 million with a local insurance salesman who was operating a Ponzi scheme. The Ponzi schemer ran all of the transactions through his brokerage...
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