Bank of America Lawsuit Related to Ponzi Scheme
To view a copy of the complaint, click here.
June 30, 2011 – Class Action Lawsuit Filed Against Bank of America Related to Ponzi Scheme
Bank of America was named as a defendant in a class action lawsuit filed today in Los Angeles Superior Court on behalf of hundreds of LA homeowners and investors who lost millions of dollars in a highly complex Ponzi scheme run by one of Los Angeles’ most notorious fraud operators, Juan Rangel. The lawsuit, filed by Capretz & Associates and the law firms of Pearson, Simon, Warshaw & Penny, LLP, and Girardi & Keese, alleges that Bank of America employees as well as bank management were aware or should have been aware of the Ponzi scheme and despite such knowledge provided banking services to Juan Rangel and his associates. Notably, Dony Gonzalez, a former Bank of America branch manager was indicted and pled guilty to receipt of bribes by Juan Rangel.
The lawsuit alleges that from about November 2007 to July 2008, Rangel used his firm, Financial Plus Investments, as well as other financial companies he owned, to defraud middle-class working families through investment, mortgage and foreclosure rescue schemes that netted Rangel about $30 million. Rangel’s firms shut down in July 2008 and Rangel was arrested by federal agents in August 2008.
Also named as a defendant in the class action lawsuit is Pablo Araque, who provided accounting services to Financial Plus. Araque has been indicted and is currently scheduled to go to trial in February 2012.