In the middle of last year victims of William Apostelos’ Ponzi scheme filed a lawsuit against PNC Bank.
By processing Ponzi payments, victims claimed that PNC Bank ‘played an “indispensable role” in the success of’ Apostelos’ scheme:
“The Aposteloses ‘deposited virtually all of the money’ that they raised into one primary PNC business account (referred to as the 8143 Account) and paid ‘monthly interest payments’ to investors from that account.”
All through the life of his Ponzi scheme, Apostelos opened 8 accounts with PNC Bank.
The victims argued that PNC Bank should have caught on to Apostelos’ fraud and are thus liable for $30 million in damages.
In a Motion to Dismiss filed by PNC Bank, they argued that they only participated in “standard commercial banking activities”.
Judge Rose granted the Motion to Dismiss on January 10, 2017 since the victims failed to prove otherwise.
PNC Bank maintains that they had no idea Apostelos was committing Ponzi fraud and Apostelos’ victims failed to provide any evidence to the contrary.
William Apostelos himself is currently scheduled to face trial on February 6, 2017. Check back for further information.