Banks and Brokerage firms can be liable for aiding and abetting ponzi schemes

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...