Two residents of Marion County, Ohio filed a federal class action lawsuit against five brokers and Bank of America for their alleged involvement with running and aiding and abetting a Ponzi scheme. The Meyer Wilson law firm is not involved in the litigation. We feel that the best course of action for the numerous clients we are representing in this alleged Ponzi Scheme is to pursue individual actions against responsible parties.
In their proposed class action lawsuit, siblings Richard Schultz and Mary Beth Heinert state that their late father was swindled into investing over half a million dollars in a number of ventures tied to this scheme, and Heinert also claimed that she invested an additional $450,000 of her own money in a fake company.
The lawsuit purports to represent hundreds of investors from five different states who were victims of this alleged Ponzi scheme that raised approximately $102 million, dating back to at least 2011. The lawsuit names brokers Thomas Brenner (Ohio), John Piccarreto (Texas), Paul Anthony LaRocco (Florida), Christopher Parris (New York), and Perry Santillo (New York), who allegedly controlled approximately 100 accounts at Bank of America. The bank was named in the lawsuit for allegedly aiding and abetting breach of fiduciary duties and common law fraud. The lawsuit also claims that Bank of America’s “knowing assistance” was a key factor in the Ponzi scheme.
According to court documents, the five brokers solicited investments from their areas of the United States which, once secured, were then deposited in Bank of America accounts. From there, the money was transferred and redistributed between additional bank accounts within the week, if not that same day. This money would then be used to pay off the previous investors or deposited in the broker’s personal accounts. The suit states that the speed at which these transactions occurred should have raised red flags at Bank of America, which should have triggered an investigation but which never occurred, according to the complaint.
The Ponzi scheme was eventually brought down when the Securities and Exchange Commission (SEC) investigated the brokers and filed charges against them on June 19, 2018.
If you were the victim of fraud, our attorneys at Meyer Wilson are ready to help. We have successfully secured more than $350 million for our clients, and we are committed to providing you with the experienced and knowledgeable representation you deserve. Call us at (800) 738-1960 to discuss your legal options with a member of our firm today, or fill out our online form to schedule a free case evaluation.