September 2009
Federal Court Upholds RICO Claims Against Wachovia and Others Asserted by KBT&F on Behalf of Le-Nature's Trustee
David S. Rosner,
Michael M. Fay,
Christopher P. Johnson,
Christine A. Montenegro,
Kim Conroy,
Cara Marie Ciuffani
In three pathbreaking decisions last week, U.S. District Judge Donetta W. Ambrose in Pittsburgh upheld 25 of 26 fraud and RICO claims KBT&F has asserted, on behalf of the Trustee for
bankrupt beverage company Le-Nature's,
against Wachovia and other defendants, to recover over
$1.5 billion in actual and tr
ebled damages for
their participation in Le-Nature's
massive Ponzi-scheme fr
aud. The
court rejecte
d defendants
' contention
, among others, that the
claims against them should be dismissed on the purported ground that they only assisted in the Ponzi scheme, which was run by others.
The court a
lso confirmed that Wachovia
and the other defendants could be held liable for all of the money raised and lost in the Ponzi scheme. KBT&F partners David Rosner, Michael Fay and Christopher Johnson, special counsel Christine Montenegro and associates Kim Conroy and Cara Ciuffani represent the Trustee for Le-Nature's in this action.