⚖️ JPMorgan Chase is accused of facilitating an alleged Ponzi scheme targeting retail investors.
Plaintiff David Stapleton alleges that the bank supported a fraudulent scheme orchestrated by Sanjeev Acharya, the CEO of Silicon Sage Builders, that resulted in massive financial losses for investors.
💼 The allegations:
Acharya raised more than $119 million from 250 investors for unprofitable projects. Ponzi tactics were used to pay off early investors at the expense of new investors. JPMorgan Chase, Stapleton alleges, managed 77 bank accounts and processed more than 130,000 transactions that facilitated the scheme.
👥 Bank involvement:
A bank manager reportedly knew about the fraud and helped circumvent internal fraud protection protocols.
The lawsuit seeks damages and punitive damages, including punitive damages and attorneys' fees.