CommunityOne Bank Sued by Investors in Ponzi Scheme Who Lost Millions

Posted on October 2nd, 2015 at 3:13 PM
CommunityOne Bank Sued by Investors in Ponzi Scheme Who Lost Millions

From the Desk of Jim Eccleston at Eccleston Law LLC:

Almost three dozen investors have sued CommunityOne Bank alleging that the bank knew of a Ponzi scheme which led to more than $10 million in losses. The case revolves around Keith Simmons and his firm, Black Diamond Capital Solutions, which Simmons presented as a foreign currency trading program that later was unraveled as a scheme. The lawsuit alleges that CommunityOne was aware of Simmons' investments in the foreign exchange markets, and that CommunityOne even assisted Simmons in laundering money to pay himself from the account.

Simmons eventually was sentenced to 40 years prison time for the scheme, in which more than 400 investors lost $35 million, after being arrested by the FBI in December 2009. The investigation revealed that Simmons tapped millions from the scheme to spend on himself, on real estate, business ventures, and personal property.

The lawsuit also claims that Simmons used his CommunityOne account to disperse the $35 million invested with Black Diamond in order to transfer $18 million guised in "interest payments" to investors. Around the time Simmons was arrested in 2009, Black Diamond's quarterly statements showed assets of about $423 million when in actuality the company had only $500.

The attorneys of Eccleston Law LLC represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 65 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston

Tags: Eccleston Law LLC, James Eccleston, eccleston, Eccleston Law, CommunityOne Bank, Keith Simmons, Black Diamond Capital Solutions

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