The U.S. Court of Appeals for the Eleventh Circuit rendered a significant ruling on Tuesday. It clarified that a receiver, assigned following the unravelling of a Ponzi scheme, has the standing to uphold fraudulent-transfer claims against alleged abettors. Furthermore, it might also hold the standing to prosecute common-law tort claims against such accomplices.
The decision seemingly brings positive implications for Burton Wiand in his capacity of the receiver for Oasis International Group Ltd. Wiand, supported by James Sallah, partner, and Joshua Katz, of counsel at Sallah Astarita & Cox in Boca Raton, represents the firm.
Putting it in the words of the appeals court, “When the culprits are replaced and a receiver takes over, the business frameworks are no longer the ‘heartless zombies’ of the wrongdoer; they are ‘[f]reed from his magic’ and recover the standing to sue for the return of money moved dishonestly.”
More about this essential decision can be read via the original news report. Please note that the context might be partially incomplete due to the paywall on the source article.