Jul 6, 2010
Aiding and Abetting Charges in $22M Ponzi Scheme Reinstated Against Law Firm
A New York appeals court has reinstated aiding and abetting charges against a New Jersey law firm in a suit by investors over its alleged role in a $22 million Ponzi scheme. A lower court in 2008 granted Lum, Drasco & Positan’s motion to dismiss the charges by investors who claimed the lawyers knew about the undisclosed criminal histories of the scheme’s perpetrators prior to its unraveling. But the appeals court judge reversed, saying the investors had adequately alleged the lawyers had actual knowledge of the fraud.