Posted on 03/28/2009 11:00:18 PM PDT by TigerLikesRooster
Bank of America Accused in Ponzi Lawsuit
By LESLIE WAYNE
Bank of America effectively set up a branch in a Long Island office that helped Nicholas Cosmo carry out a $380 million Ponzi scheme, according to a class-action lawsuit filed in federal court.
The lawsuit, filed in Federal District Court in Brooklyn late Thursday, contends that Bank of America “established, equipped and staffed” a branch office in the headquarters of Mr. Cosmo’s firm, Agape Merchant Advance. As a result, the lawsuit contends that the bank knowingly “assisted, facilitated and furthered” Mr. Cosmo’s fraudulent scheme.
“Bank of America was at the epicenter of this scheme,” said the lawsuit, which seeks $400 million in damages from the bank and other defendants. “Without Bank of America’s participation, the scheme would not have succeeded and grown to such an enormous size.”
Mr. Cosmo surrendered to authorities at a Long Island train station in January in connection with a suspected Ponzi scheme involving what Mr. Cosmo called “private bridge loans” that promised investors returns of 48 percent to 80 percent a year. Many of his 1,500 investors were blue-collar workers and civil servants.
Bank of America declined to comment, saying that it had not yet seen the suit.
(Excerpt) Read more at nytimes.com ...
Ping!
I find this very, very hard to believe.
Bull Dinky
They may not say Bank of America on them but they are usually funding them.
“... promised investors returns of 48 percent to 80 percent a year.”
Anybody who “invests” with someone who promises that is an idiot and deserve what they get.
Along with those pushing it.
I cant get away from BOFA fast enough
Never liked them. I hate doing business with them.
I received a check for the sale of some merchandise. The check was drawn on Bank of America. I went to a branch office to cash the check. They said it would cost me $6.00 to get the money. It was a check drawn on one of their accounts. I can’t believe anyone takes check written from a B of A account. I certainly will not.
"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." - Manuel II Palelologus
Wow, the Bank of South America involved in fraud? The same bank that targeted illegal aliens with a marketing campaign? Hard to believe.
We’re in the process of extricating ourselves from BofA. We have a business account with them and I have to say they’re the worst bank I’ve ever dealt with...ever. We’re currently cleaning up our account from a massive hack. There are still charges taking place even though the cards have supposedly been canceled for a month. I could go on and on, but that bank is in-freakin-credible. I’d better stop before I blow a gasket...
I don’t think this passes the smell test.
A contractor working for me was telling me BoA would only let him access a little more than half of the proceeds of a progress payment check I had written. He wanted to be sure there was no problem on my banks end, before he went to them. BoA had hit my bank immediately, the day I had written the check and he had deposited it, for the full amount (of course). We were having this conversation three business days later.
I got into my account online and gave him an image of the processed check to use to help him beat up BoA. He’s switching banks.
I have a Home equity LOC which I initiated beginning of 2008. The deal was if i allow them to debit my account for the interest only on a monthly basis as well as immediately take a $25,000 advance against the line, I would get a rate equal to about 1.5 points behind prime. My rate is currently 2.74% and as much as i would like to leave them I can’t find anyhting close so I will continue to take advantage of this great deal.
For a short period of time I was able to invest in a savings account at 3.68% while paying 2.74%. It was free money while it lasted (3 months). As soon as the savings rate dropped I withdrew the cash and paid down the LOC.
For many years I had a B of A credit card that I used occasionally and always paid off the same month any charges were accrued. I paid by way of an electronic transfer from my account with Union Bank of California with payment to arrive at B of A at least two days before payment was due. Late charges and interest charges started showing up on the statement even though I had proof of the funds arriving at B of A two days prior to the due date. Their explanation was that they don’t post payments for at least three to five days after arrival of the funds at their bank, and for their processing delay I was being charged.
After my complaint,they eventually cancelled the charges, after which I cancelled the card, and paid off a small current balance plus $10 for any incidental charges, leaving a $10 credit balance on a cancelled account. Then, for a couple of months, I received a statement, with a nasty note telling me to settle the credit balance. I finally told them to send me the $10, plus interest, which they did, thus ending my 50 year relationship with B of A.
I’m curious how much B of A makes from self imposed processing delays, especially from people who pay by check with no proof of when the payment actually arrived. So far as I’m concerned, they’re a bunch of crooks and I want nothing to do with them, and I’m offended that the government sends the crooks taxpayer bailout money.
In these times of anti-Wall Street rhetoric, it will be cinch to find a jury who hates everything Bank of America. It’s the old “The bank made me do it” defense. Slick lawyer.
This is bogus, but very ingenuous. Watch for copy cats.
Is "Bank of America" a pseudo name for the social security administration? I heard of people who paid thousands into SS every year of their working life and when they died found only about $260 in their account. Now that's a scam.
I agree with you, but it won’t stop people here from ragging on BofA
Let’s see, people who got ripped off in a ponzi scheme look to see where they can recoup their money.....this is a lawsuit, not a news report.
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