Third Circuit Remands Case Against Investment Firm for Former Executive’s Ponzi Scheme
The Third Circuit reversed a grant of summary judgment and remanded a portion of a suit against MB Investments, LLC. The issue arose from a ponzi scheme that originated from a hedge fund owned and operated by Mark E. Bloom, an executive of MB. The company was aware of the hedge fund but not the fraud. When investors brought suit against MB and other related parties, the district court dismissed the suit. However, the Third Circuit reversed the grant of summary judgment and reinstated some of the claims against MB, specifically for violations of SEC Rule 10b-5 and the Pennsylvania Unfair Trade Practices and Consumer Protection Law.
Belmont v. MB Investment Partners, No. 12-1580 (3d Cir. Feb. 22, 2013).