It seems just yesterday that we first read reports that Ponzi schemes were a part of the Great Financial Collapse. They have actually been around long enough, apparently, for one Federal Court to rule recently that a Statute of Limitations bars fraud claims against Title Insurance Companies and others who allegedly participated in such a Ponzi scheme, in Download Independent Trust Corp. v. Stewart Info. Serv's Corp. (N.D. Ill. Case No.. 10C4430, Memorandum Opinion and Order Filed February 7, 2011) PUBLIC ACCESS, also published as 2011 WL 529390 (N.D. Ill. February 7, 2011)(authorized password required to access Westlaw). "Because the statute of limitations has run on all of [the Plaintiff's] claims, [the Title Insurance Company's] Motion to dismiss is granted."
With prejudice. Id. at *5.
The Plaintiff in this case is the Receiver for Independent Trust Corporation. The Receiver sued, or at least filed suit, against several alleged Ponzi schemers. What differences, then, are there between this case and the more famous case involving the Bankruptcy Estate of Mr. Bernard Madoff?
Well, the timeframes are a huge difference. In the Independent Trust Corporation case, the fraud claims were based on events beginning as far back as 1986, according to the Federal Court's decision in that case.
Further, in the Madoff Bankruptcy proceeding, it is Mr. Madoff who is the Bankrupt. The current proceedings are all about the role played by others with respect to the claims of Mr. Madoff's creditors, people and entities who once were his investors -- not at all about any claims of Mr. Madoff himself against anyone else.
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