Signature Bank Sued Over Connection to Ponzi Scheme
From the Desk of Jim Eccleston at Eccleston Law LLC:
Signature Bank has become one of the largest American banks, with $33 billion in assets. However, a Ponzi scheme that lost $66 million of investor money and sent a money manager to federal prison recently tarnished the banks image.
In a lawsuit in Florida state court, investors are accusing Signature of helping a money manager named William Landberg orchestrate and perpetrate a Ponzi scheme. The money manager was able to shift money around the dozens of accounts he maintained at the bank in order to cover long-term overdrafts. Landberg has completed his sentence after pleading guilty in 2011. However, investors claim they still have not received any financial restitution.
It is alleged that, “Signature knew Landberg was operating a house of cards and knew returning checks on overdrawn accounts would make it collapse. Signature should have stopped the crime but instead perpetrated it.” Signature Bank has denied the allegations and claimed that it too was victimized. Nonetheless, the bank will have to grapple with the many banking rules and regulations that obligate it to be on guard.
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. If you are in need of legal services, contact us to schedule a one-on-one consultation today.
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