Deutsche Bank is being sued by victims of a $155m Ponzi scheme operated by a Miami-based RIA who claim the German group, which maintained accounts for the RIA, had knowledge it was acting fraudulently but failed to act.
On Tuesday, a US District Judge for the Southern District of New York gave the go ahead for the case to be argued in front of a jury with the trial set to take place in Spring next year, court records show.
Victims of the scheme filed a $200m lawsuit against Deutsche Bank in December 2020 in New York accusing the German group of acting negligently and ‘turning a blind eye’ to the Ponzi scheme by doing business with the now defunct Miami-based RIA Biscayne Capital, according to court documents.
The case revolves around Biscayne Capital and its affiliated hedge fund Madison Asset. A trio of Biscayne Capital executives were arrested and charged last September with running the international Ponzi scheme which stole $155m from its investors, according to the Department of Justice (DOJ).
The trio was charged with allegedly using their clients’ funds to pay off investors, cover company expenses and enrich themselves over the course of five years, the DOJ said in its indictment.
Ernesto Heralcito Weisson Pazmino, a former financial advisor and manager at Biscayne in Miami, pleaded guilty to a single count of wire fraud in April.
In the New York case, Deutsche Bank has been accused of enabling ‘theft on a massive scale’ by former…
