In Litigation, News & Updates

In an article published by the Daily Business Review, Aleida Martinez Molina, Chair of the Firm’s Insolvency and Creditors’ Rights Practice Group commented on the recent Eleventh Circuit Court of Appeals ruling in favor of JPMorgan Chase Bank. The Court of Appeals ruled against the court-appointed receiver for two entities whose principals allegedly engaged in a Ponzi scheme.

The receiver attempted to recover funds under the Florida Uniform Fraudulent Transfer Act and sought to collect tort damages from JPMorgan. The U.S. District Court in Miami dismissed the complaint under Federal Rule of Civil Procedure 12. It held that the receiver failed to sufficiently show JPMorgan had actual knowledge of the Ponzi scheme, which resulted in the Court of Appeals affirming the ruling of the District Court.

Aleida observed that receivers have their limits. “I cannot overstate the importance of the receivership order and what it says and how it says it. It is another lesson for those seeking to implement receivership or receivers.”

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