Jury Ruling Upheld That Investment Company Was a Ponzi Scheme

A jury verdict that a bankrupt investment company operated as a Ponzi scheme was upheld after a split federal appeals panel determined the jury didn’t need to prove intent or knowledge of the scheme.

The US Court of Appeals for the Ninth Circuit’s majority ruled that fraudulent intent “may be inferred” by evidence of the existence of a Ponzi scheme under its circuit definition, according to its Friday opinion. The majority’s ruling affirmed the jury’s conclusion that EPD Investment Co. LLC operated as a Ponzi Scheme from 2003 until 2010.

“Because the evidence at trial was more than sufficient to ...