A bank is likely liable to victims of a fraudulent scheme if an employee at the bank provided ordinary banking services (such as opening a bank account) when the employee knew that those services would be used to help a fraudulent scheme. This blog post discusses some cases alleging that banks are liable for aiding…
Continue reading ›It Is Virtually Impossible That GWG L-Bond Investors Will Get What They Were Owed As most L-Bond holders know, GWG entered “Chapter 11 bankruptcy” in 2021. That means GWG admitted that it would probably not be able to pay its debts. The bankruptcy allowed GWG to “restructure” its debts to L-Bond holders. As a result,…
Continue reading ›Banks Law Office is investigating claims that may potentially be brought on behalf of people who invested in SimTradePro. The Commodity Futures Trading Commission announced a civil enforcement action alleging that SimTradePro Inc. defrauded more than 100 U.S. customers out of at least $2.3 million. SimTrade Pro Inc. allegedly acted as an unregistered commodity trading…
Continue reading ›On September 30, 2024, the Commodity Futures Trading Commission filed a lawsuit in the Southern District of Florida against Traders Domain (“TD”) and other defendants. The complaint alleged that Traders Domain operated a Ponzi scheme. That is, Traders Domain used new investor money to pay back old investors to create the illusion that the investments…
Continue reading ›Banks Law Office previously announced that it filed a putative class action lawsuit on behalf of victims of Wealth Assistants, a fraudulent enterprise whose scheme involved offering “passive income” to people who invested in Amazon e-commerce stores that Wealth Assistants managed. Banks Law Office filed a motion to amend the complaint. The defendants in the…
Continue reading ›Understanding the Electronic Funds Transfer Act: Protecting Consumers from Unauthorized Transactions The rise of electronic banking and digital payments has transformed the way we manage our finances, offering convenience and speed. However, it has also brought challenges, including the risk of unauthorized transactions and errors. Enter the Electronic Funds Transfer Act (EFTA), a federal law…
Continue reading ›This year, the Federal Trade Commission has prosecuted several scams that sell Amazon ecommerce store management services. The fraudsters typically tell their victims that it is possible to make hundreds of thousands of dollars in passive income by owning successful online Amazon stores and stocking them with inventory. The victims then pay the fraudsters a…
Continue reading ›Introduction Fraudulent investment schemes have wreaked havoc on countless lives, and one of the most egregious cases to surface recently involves Wealth Assistants. We previously announced that a Court ordered an asset freeze against Wealth Assistants. Wealth Assistants’ complex network of individuals and entities perpetrated a widespread scam, targeting over 600 victims and swindling over…
Continue reading ›On November 14, 2024, the Federal Trade Commission will hold a hearing at which members of the public are invited to address the Commission. Banks Law Office attorney Nico Banks plans to attend the hearing to comment on “Fulfillment by Amazon” business opportunity scams, including Wealth Assistants. Ahead of that hearing, he has submitted the…
Continue reading ›Business Insider reported today about an asset freeze ordered for the owners of Wealth Assistants. The recent decision by the US District Court for the Central District of California to freeze the assets of the defendants is a crucial step towards holding them accountable and ensuring that funds are available for potential restitution. However, Banks…
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