Kathy Bazoian Phelps
Senior Counsel in Ponzi Scheme Litigation
and Bankruptcy Matters

Kathy is a senior business trial attorney with more than 30 years experience prosecuting and defending claims for high net worth clients involved in Ponzi scheme matters and in bankruptcy proceedings. Kathy’s practice includes recovering assets for clients in complex fraud cases under standard fee and alternative fee arrangements. She also handles SEC and CFTC whistleblower claims. Kathy also serves as a mediator in bankruptcy matters, in complex business disputes, and in matters requiring detailed knowledge about fraud or Ponzi schemes.

Kathy’s Clients in Ponzi Scheme Cases and Bankruptcy Matters
Equity Receivers
Bankruptcy Trustees
High Net Worth Investors
Debtors in Bankruptcy
Secured and Unsecured Creditors

Saturday, July 20, 2013

Custodial Bank Wins Jury Verdict in Ponzi Scheme Case

Posted by Kathy Bazoian Phelps

A group of investors in the Madoff case suffered a loss when the jury verdict was announced in favor of Westport National bank and its parent, Connecticut Community Bank. Read the following article for more information about the jury verdict and the related settlement with some of the investors: http://dealbook.nytimes.com/2013/07/18/jury-largely-sides-with-bank-in-madoff-related-case/?ref=business\

This result is in contrast to the large jury verdict of $67 million last year against TD Bank in the Coquina v. TD Bank case. The contrasting results in the jury verdicts in these two bank liability cases may have much to do with the way the juries responded to the facts and legal theories involved. The Connecticut Community Bank case involved complex issues of contract interpretation and fiduciary duties relating to custodial agreements, while the TD Bank involved aiding and abetting fraud allegations with a bank officer who asserted his Fifth Amendment privilege and refused to testify in response to questions about his allegedly fraudulent conduct. If a bank liability case gets to a jury, practitioners on both sides of fight should keep in mind that fraud may be easier for a jury to understand than contract interpretation or fiduciary duties.

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