United States Ninth Circuit

In a suit by a group of investors defrauded by the "Millennium Ponzi scheme," seeking recourse against a successor bank for the predecessor's aiding and abetting of the Ponzi scheme and for continuing the predecessor's problematic practices following assumption, the district court's dismissal of the complaint is affirmed, where: 1) as to claims based on the predecessor's conduct, the plaintiffs failed to exhaust their administrative remedies under the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA); and 2) although the plaintiffs' claims based on the post-purchase actions did not have to be exhausted under FIRREA, the plaintiffs did not adequately plead a claim based on the successor bank's independent conduct.

Appellate Information

• Decided 03/20/2012
• Published 03/20/2012

Judges

• Lucero

Court

• United States Ninth Circuit

Counsel

• For Appellant:
  
• Niall P. McCarthy, Robert A. Sacks