Analysis, Impact, and Outlook on Ponzi Scheme Litigation
O’Dell v. Berkshire Bank, 5:24-cv-00652 (N.D.N.Y.)
On October 31, 2024, the Northern District of New York dismissed a putative class action against Berkshire Bank (“Berkshire”) with prejudice.[1]
O’Dell involved the standard story of a Ponzi class action against a bank, in which investors lost money through a Ponzi scheme—perpetrated by a…
Continue Reading… Northern District of New York Dismisses Claim—With Prejudice—of a Bank Aiding-and-Abetting Ponzi SchemeMcGuireWoods’ Ponzi Litigation team launched its Ponzi Perspectives blog in early 2021 to track key decisions and new cases in Ponzi civil and criminal litigation. Ponzi Perspectives focuses on cases and decisions that have the potential to influence controlling law on Ponzi-related issues. The blog also offers analysis of key decisions and practical considerations when…
Continue Reading… Ponzi Perspectives: 2021 Year-End Roundup
Ponzi schemes focused on fake investment opportunities are nothing new. Bernie Madoff, Allen Stanford and Tom Petters are now household names. But there has been a particular rise of Ponzi schemes specifically in the film and video content industry that has intensified in the last few years.
As streaming services vie for dominance in the frenzied content wars in an effort to draw in more and more viewers, this trend is likely to accelerate. These streaming services will spend tens of billions of dollars this year alone creating and acquiring video content.[1]
These conditions create a perfect breeding ground for Ponzi schemes, given the amount of money changing hands and the lax due diligence standards investors sometimes accept in exchange for the chance to tap into this hot market.
In the last year alone, the largest film financing Ponzi scheme in U.S. history collapsed, and these schemes spread to overseas markets, like China.
Continue Reading… Ponzi Schemes: A Growing Hazard in Film Financing
