Chase Bank, Others Get Final Approval on Ponzi Scheme Settlement

An agreement by three banks and a financial software company to settle Ponzi scheme victims’ claims for a total of $3.75 million merits final approval, a federal court ruled.

Judge Michael H. Simon entered a final judgment dismissing JPMorgan Chase, KeyBank NA, Columbia Banking System Inc., and Intertrust Corporate & Fund Services LLC in an order issued Wednesday in the US District Court for the District of Oregon. Chase, KeyBank, and Columbia—the parent of Umpqua Bank—will each contribute $1 million under the class action settlement. Intertrust will pay $750,000.

Ponzi schemes can ensnare banks in significant liability, with Umpqua itself ...