January 18, 2018 / 9:49 PM / a year ago

Investor lawsuit alleges Comerica Bank aided $1.2 bln Ponzi fraud

Dallas-based Comerica Bank has been hit with a lawsuit accusing it of aiding a $1.2 billion Ponzi scheme run by a Sherman Oaks, California businessman that collapsed in December when his companies stopped paying investors and filed for bankruptcy.

The proposed class action was filed Wednesday in Los Angeles federal court seeking damages for investors affected by the alleged fraud by the California-based Woodbridge Group. Investors accuse Comerica of ignoring glaring red flags in bank accounts it managed for Woodbridge, including the diversion of money to the company’s chief executive Robert Shapiro and payments for luxury purchases at stores like Chanel and Louis Vuitton.

To read the full story on WestlawNext Practitioner Insights, click here: bit.ly/2DjAtKy

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