JPMorgan, KeyBank, Umpqua Remain in Ponzi Suit as Others Exit

JPMorgan Chase Bank NA, KeyBank NA, and Umpqua Bank‘s parent company must face an investor’s lawsuit alleging he was defrauded in a Ponzi scheme, a federal court ruled.

JPMorgan, KeyBank, and Columbia Banking System Inc., which runs Umpqua, face a claim of joint liability for the wrongful conduct of the Ponzi scheme’s two operators, Judge Michael H. Simon said Thursday for the US District Court for the District of Oregon. KeyBank and Columbia additionally face claims under Oregon’s securities laws in the proposed class action, Simon said.

But investor Amit Fatnani can’t proceed with claims against ...