Deutsche Bank Hit With $95 Million Verdict in Florida Ponzi Case

Gunnar Larson g at
Tue Apr 25 14:11:30 PDT 2023

Sounds like the United Nations ...

Damages sought by companies’ liquidators
Bank has been accused of lax controls
Deutsche Bank AG must pay $95 million over allegations it negligently
disregarded warning signs about a high-dollar Ponzi scheme and even aided
and abetted it, a jury in Florida determined Tuesday.

Representatives of 13 Cayman Islands companies undergoing liquidation
brought the suit in the US District Court for the Southern District of
Florida. Five of them were allowed to proceed to trial.

The lawsuit is among a dozen filed over a South Florida real estate
investment scheme, including at least two against Deutsche Bank, which has
been dealing for years with accusations of lax internal controls.

The liquidators alleged that Deutsche Bank and several subsidiaries knew
that the real estate investors’ funds weren’t being used for their intended
purpose. The scheme allegedly resulted in hundreds of millions of dollars
in losses.

Four individuals allegedly ran two companies, South Bay Holdings LLC and
Biscayne Capital International LLC. Those individuals allegedly used
securities-issuing companies to connect investors to South Bay’s real
estate assets, which were heavily leveraged and worthless as backing for
the securities. The issuers are among the companies whose liquidators are
suing Deutsche Bank.

EFR Law Firm and Bondurant Mixson & Elmore LLP represent the companies’
liquidators. Duane Morris LLP and Cahill Gordon & Reindel LLP represent
Deutsche Bank.

The case is Pearson v. Deutsche Bank AG, S.D. Fla., No. 21-cv-22437,
verdict rendered 4/25/23.
-------------- next part --------------
A non-text attachment was scrubbed...
Name: not available
Type: text/html
Size: 2270 bytes
Desc: not available
URL: <>

More information about the cypherpunks mailing list