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Ponzi Scheme – US Lawyer & Employees of Canadian Bank

Ponzi Scheme – US Lawyer & Employees of Canadian Bank

Our firm was retained by two insurance companies to audit a fidelity / employee dishonesty insurance claim. The claim involved a $2 billion Ponzi scheme that had been committed by a U.S. lawyer with the assistance of employees of a large Canadian bank.

MDD’s role was to perform a source and use of funds analysis, review records for 18 bank accounts that were allegedly used to carry out the scheme, identify the funds in the bank account that were fraudulently obtained (versus legitimate funds), compare the loss amounts presented in the claim to third party documentation, review transcripts of depositions with the accused employees and perform research on insurance coverage issues.

Partly because of our work, the individual responsible for the scheme was sentenced to federal prison. The court case with the financial institution is ongoing.

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