David Kirkpatrick

March 30, 2009

BofA in on Ponzi action

Filed under: Business, Politics — Tags: , , , — David Kirkpatrick @ 2:22 pm

Not sure if this is opportunism or something serious. Seems the New York legal system really has is out for Wall Street and the financial sector right now.

From the link:

Bank of America effectively set up a branch in a Long Island office that helped Nicholas Cosmo carry out a $380 million Ponzi scheme, according to a class-action lawsuit filed in federal court.

The lawsuit, filed in Federal District Court in Brooklyn late Thursday, contends that Bank of America ”established, equipped and staffed” a branch office in the headquarters of Mr. Cosmo’s firm, Agape Merchant Advance. As a result, the lawsuit contends that the bank knowingly ”assisted, facilitated and furthered” Mr. Cosmo’s fraudulent scheme.

 

”Bank of America was at the epicenter of this scheme,” said the lawsuit, which seeks $400 million in damages from the bank and other defendants. ”Without Bank of America’s participation, the scheme would not have succeeded and grown to such an enormous size.”