Ponzi Schemes and Litigation Risks: What Every Financial Services Company Should Know

In March 2010, Kenneth Johnston, Kellie Johnson & Joseph Hummel published an article in the North Carolina Banking Institute Journal, "Ponzi Schemes and Litigation Risks: What Every Financial Services Company Should Know," 14 N.C. Banking Inst. 29 (2010).  The article discusses litigation trends arising from collapsed Ponzi schemes and analyzes a financial institution's best defense strategy to Ponzi scheme litigation.  Moreover, the article identifies proposed federal legislation that could change the framework for aiding and abetting claims in the context of Ponzi scheme liability.

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