At an April 26, 2010 article*, I basically explained that the damaged investors of a Ponzi scheme can not successfully recover money damages on the ground that a financial institution violated the Bank Secrecy Act:

(To Read The Article, Click On The Image Above)

This article mentioned a 2009 lawsuit damaged investors brought against Wachovia, etc. and another one filed against Associated Bank.  The damaged investors filed the lawsuits against Wachovia and Associated pursuant to the Bank Secrecy Act and otherwise.  According to the damaged investors, they lost investment monies because securities fraudsters had laundered Ponzi proceeds by abusing these financial institutions.

In applying the same kind of reasoning set forth by the article, the Wisconsin Court of Appeals recently affirmed the dismissal of one of these lawsuits.  At pp. 9-10, paragraphs 21-23 of its June 7, 2011 Opinion, the Wisconsin Court of Appeals indicated that damaged investors did not possess a cognizable claim against Associated Bank, under the Bank Secrecy Act.

*"Florida Court Unlikely to Find Wachovia, Mastercard Civilly Liable for Missing Ponzi Scheme", Copyright 2010 Alert Global Media, reprinted with permission.

Copyright 2011 Fred L. Abrams