Plaintiffs, individually and on behalf of a class of similarly situated individuals, filed 2nd amended complaint alleging that bank failed to exercise ordinary care to protect them from defendant Mouman, a hedge fund manager who had 3 accounts at bank and who set up 3 accounts at that bank as part of a Ponzi scheme. Mouman was sentenced to 10 years and ordered to pay restitution of $7.57 million. Plaintiffs' allegations of bank's actual knowledge are conjecture based on inference and unsupported by fact. The transfer of money from the funds to Moumen's personal bank and trading accounts was not outwardly improper. Plaintiffs did not allege sufficient facts to show bank acted in bad faith. Court properly dismissed claim that bank aided and abetted Moumen's breach of fiduciary duty. Court properly dismissed 2nd amended complaint under section 2-615 of Code of Civil Procedure. (CONNORS and ODEN JOHNSON, concurring.)
Illinois Appellate Court
Civil Court
Fraud