No Fiduciary Duty Between Lead and Participants
July 10, 2017
by: Jerry Blanchard
A recent decision out of federal court arising out of litigation involving a Ponzi scheme has reinforced the principle that the lead in a loan participation does not owe a fiduciary duty to participants. The case of Finn v. Moyes (Finn v. Moyes, 2017 WL 1194192 (D Minn 2017)) arose from a Ponzi scheme whereby First United Funding, LLC (“First United”) defrauded numerous banks of over