NY Court Gives Second Wind to Fraud Case Against Husch Blackwell
An appeals court partly revived an investor group's claims that Husch Blackwell should share liability for a client's alleged embezzling.
January 25, 2019 at 04:29 PM
3 minute read
Husch Blackwell will continue to face claims that it aided and abetted a former client in an alleged investment scheme, following a New York appeals court ruling on Thursday that reinstated part of an investor lawsuit against the firm.
The First Department of the New York Supreme Court Appellate Division came down partly in favor of a group of investors—Gansett One LLC, SES Wealth Advisors LLC, GW Holdings LLC and Mast and Son. They sued Husch Blackwell over its representation of Kamran Nezami, a businessman who owned several medical companies, alleging that he began embezzling funds they provided as investments in the companies.
The investors alleged that they gave Nezami some $1.35 million, but that instead of putting it toward his businesses, he diverted company funds to pay for sports cars, a private security detail, planes and several homes. The investors further alleged that Husch Blackwell should share some of the liability for Nezami's alleged actions because, at the time he attracted the investors, he had representation from Austin, Texas-based health care and corporate partner Diane Carter.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 2Wine, Dine and Grind (Through the Weekend): Summer Associates Thirst For Experience in 'Real Matters'
- 3'That's Disappointing': Only 11% of MDL Appointments Went to Attorneys of Color in 2023
- 4What We Know About the Kentucky Judge Killed in His Chambers
- 5'I'm Staying Everything': Texas Bankruptcy Judge Halts Talc Trials Against J&J
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250