Umpqua Bank Faces Trial on Aiding Client’s $300 Million Ponzi

Victims of a Ponzi-like real estate scheme who are trying to recover more than $300 million have gotten a green light to proceed toward trial against Umpqua Bank on claims that it aided and abetted the fraud.

Judge Richard Seeborg of the US District Court for the Northern District of California denied Umpqua’s request for judgment in its favor in a Dec. 16 decision. He also granted class status to people who invested money with Professional Financial Investors Inc. and a related company.

Shela Camenisch and others allege that Novato, Calif.-based PFI was founded by Kenneth Casey, who originally ran ...