L-R: U.S. Court of Appeals for the Eleventh Circuit Judge Jill Pryor, Chief Judge William Pryor and Senior Judge Stanley Marcus. (Credit: ALM/Courtesy photo) Eleventh Circuit Clarifies Receiver's Power
"When the perpetrators are removed and a receiver is appointed in their place, the corporate structures are no longer the 'evil zombies' of the perpetrator; they are '[f]reed from his spell' and regain standing to sue for the return of money fraudulently transferred," the U.S. Eleventh Circuit held.
March 20, 2024 at 02:48 PM
5 minute read
Litigation
What You Need to Know
- The U.S. Court of Appeals for the Eleventh Circuit expanded the receiver's rights in the wake of a Ponzi scheme.
- The Eleventh Circuit held receivers have standing to maintain fraudulent transfers and common-law tort claims against alleged accomplices.
- The underlying appeal is ancillary to a series of civil and criminal actions brought by the Commodity Futures Trading Commission and the Department of Justice against the Oasis Ponzi scheme.
The U.S. Court of Appeals for the Eleventh Circuit ruled that a receiver appointed in the wake of a Ponzi scheme has standing to maintain fraudulent-transfer claims against alleged accomplices, and might have standing to pursue common-law tort claims against such accomplices.
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