Movie Investors’ Ponzi Scheme Suit Tossed for Ignoring Court

Allegedly defrauded movie investors twice disregarded court orders to limit revisions to their suit and don’t have permission to try again, a federal judge ruled.

Instead of correcting defects identified in a previous ruling, Casey Oaks and James Mormile substituted new legal theories for old ones in their suit against a producer’s middleman, Judge Brantley Starr said for the US District Court for the Northern District of Texas in an order docketed Wednesday.

Starr dismissed the proposed class action “without prejudice” to re-filing. Nothing in his order “prevents Oaks and Mormile from refiling their action with the new legal theories,” ...