Notable litigation filed during June 2023 includes: (1) Bowman v. Unibank; (2) SEC v. Baston; (3) Hafen v. Guyon, et al.; (4) SEC v. Royal Bengal Logistics, et al.; (5) Decimal Capital Partners v. Benavente; and (6) Agri Capital v. Soberal, et al.
Breach of Fiduciary Duty
Notable Litigation – May 2023
Notable litigation filed during May 2023 includes: (1) SEC v. Bartlett; (2) SEC v. Griffin; (3) Warrow v. Turnipseede; and (4) Commodity Future Trading Commission v. Galles.
SEC v. Bartlett, Case No. 8:23-cv-00765 (C.D. Cal.)
The SEC filed suit against defendant schemers in California federal court for an alleged scheme…
Continue Reading… Notable Litigation – May 2023Ponzi Perspectives: 2022 Year-End Roundup
McGuireWoods’ Ponzi Litigation team launched its Ponzi Perspectives blog in early 2021. Since that time, we’ve posted detailed case alerts of Ponzi-related complaints filed throughout the country and posted key decisions that have the potential to influence controlling law on Ponzi-related issues involving financial institutions. This 2022 year-end round up summarizes the cases and opinions analyzed…
Continue Reading… Ponzi Perspectives: 2022 Year-End RoundupPonzi Perspectives: 2022 Midyear Roundup
McGuireWoods’ Ponzi Litigation team launched its Ponzi Perspectives blog in early 2021. Since that time, our focus is to track key cases and decisions that have the potential to influence controlling law on Ponzi-related issues. The blog also offers analysis on practical considerations when defending Ponzi litigation. This 2022 mid-year round up summarizes the new…
Continue Reading… Ponzi Perspectives: 2022 Midyear Roundup
New Complaint – Tu Le et al. v. Prestige Community Credit Union
Tu Le et al. v. Prestige Community Credit Union, filed in the United States District Court for the Central District of California on February 18, 2022, is the second putative class action filed in connection with a church-based investment scheme propped up by Ponzi-type payments, this time targeting the bank that housed the schemers’ accounts.
Plaintiffs Tu Le, Geneva Nguyen, and Mai T. Ly are individuals who invested in a scheme run by entities related to a now-defunct church and its pastor, convicted felon Kent R.E. Whitney (the “Whitney Schemers”). The scheme targeted individuals by misrepresenting that their funds would be used to open investment accounts earning over 10% interest, but very little of investor funds actually went into trading accounts. Defendant Prestige Community Credit Union (“Prestige”) is the credit union purportedly used by the Whitney Schemers. Plaintiffs seek to represent a class of all individuals who invested and lost money with any of the Whitney Schemers, as well as a sub-class of all such class members who were residents of California and over 65 years old at the time of investment.
Continue Reading… New Complaint – Tu Le et al. v. Prestige Community Credit Union
New Complaint – Bui v. Nguyen, et al.
Bui v. Nguyen was filed in California Superior Court on December 30, 2021, claiming relief for civil damages. Specifically, the complaint alleges claims for breach of contract, breach of fiduciary duty, promissory fraud, constructive fraud, fraudulent concealment, and conversion.
Plaintiffs are three individuals who invested funds with Defendants The Church for the Healthy Self a/k/a CHS Trust (“Defendant Church”), its pastor Kent Whitney (“Whitney”), other individuals touting the alleged scheme, and various television stations.
New Complaint – Fiene v. Schweinzger
Christian Fiene and Erik Kiser v. Matthew Schweinzger was filed in the Northern District of Illinois on October 27, 2021, seeking damages of more than $500,000 for state statutory and common law claims related to the Defendant’s role in a Ponzi scheme orchestrated by Zachery Horwitz and his company, 1inMM Capital, LLC (the “Horwitz Scheme”).
The Horwitz Scheme defrauded investors by representing that proceeds from each promissory note placed in 1inMM’s offering were going to be used to purchase the rights of particular movies, which would then be licensed to major streaming services such as HBO and Netflix. However, Horwitz and 1inMM had no relationship with HBO or Netflix and had no plans to license any movie rights to those companies.
Plaintiffs Fiene and Kiser are two individuals who were duped into investing into the Horwitz Scheme. Defendant Schweinzger, the Plaintiffs’ former college classmate, is a principal of JJMT Capital, LLC (“JJMT”), which Plaintiffs allege was created for the sole purpose of selling promissory notes to fund the Horwitz Scheme’s fake film licensing deals. JJMT was paid 15% commission on each investment.
New Complaint – Lowry, et al. v. Edelman, et al.
Lowry, et al. v. Edelman, et al. was filed in the U.S. District Court for the Southern District of New York on September 21, 2021, claiming securities fraud and various state-law causes of action based on a fraudulent scheme to induce investments in cryptocurrency and then embezzle those investments.
Continue Reading… New Complaint – Lowry, et al. v. Edelman, et al.
New Complaint – Sedlar-Sholty, et al. v. Acclivity West, LLC, et al.
Sedlar-Sholty, et al. v. Acclivity West, LLC, et al. was filed in the Superior Court of the State of California, County of Los Angeles on July 19, 2021 seeking damages for negligence, breach of fiduciary duty, and negligent and intentional misrepresentation in connection with a life settlement investment Ponzi scheme.
Plaintiffs are numerous individual and trustee investors who made investments in life insurance policies, either independently or through their retirement programs. Defendants are Acclivity West LLC (“Acclivity West”), a California company, and several owners and employees of Acclivity West.
Continue Reading… New Complaint – Sedlar-Sholty, et al. v. Acclivity West, LLC, et al.
New Complaint – Morrison v. Rockwell
Morrison, et al. v. Rockwell, et al. was filed in California Superior Court, Marin County, on May 28, 2021. The complaint seeks civil damages for claims of breach of fiduciary duty, multiple violations of the California Corporations Code, constructive fraud, breach of contract, and negligence.
Plaintiffs are a group of investors who used Defendants as investment advisors. Defendants are a series of corporate entities, Dow Rockwell, LLC, Rockwell Retirement Partners, and Marin Wealth Management, LLC, an individual investment advisor, Rick Rockwell, and many unnamed defendants Plaintiffs believe may have been involved in aiding Defendants.