Associated Bank Off Hook in Ponzi Scheme Recovery Suit

Associated Bank N.A. could only be found to have aided and abetted a $193 million Ponzi scheme through conjecture and speculation, a split panel of the U.S. Court of Appeals for the Eighth Circuit ruled Jan. 10.

After five Minnesota-based scammers were caught and sentenced in the scheme, a receiver appointed to recover assets for the fraud victims filed suit against Associated Bank alleging it aided and abetted several torts. The reciever focused on the actions of a former assistant vice president at the bank, Lien Sarles, in setting up accounts and moving funds.

The district court granted summary judgment ...