Berkshire Bank Beats Class Action Alleging Aid of Ponzi Scheme

A proposed class action failed to adequately allege Berkshire Bank had actual knowledge that one of its customers was running a Ponzi scheme through his Berkshire checking account, a federal judge said.

Mark O’Dell’s putative class action against the bank was dismissed with prejudice for failing to provide evidence that Berkshire had actual knowledge or “substantially assisted” in the operation of its customer’s Ponzi scheme, Judge David N. Hurd of the US District Court for the Northern District of New York said in a Thursday order.

M. Burton Marshall allegedly ran a Ponzi scheme that involved soliciting investments in ...