Article Archives >> Lead Stories >> November 16-December 15, 2008
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Attorneys Not Liable for Advice
In Nonprofit Ponzi Scheme
Since trustee stands in shoes of debtor,
claim is barred under doctrine of in pari delicto
The trustee of a bankrupt nonprofit that failed because its business model was essentially a Ponzi scheme is unable to collect damages against a law firm that gave advice in connection with the program, the 10th Circuit Court of Appeals has held. Because the organization’s culpability was far in excess of that of the law firm, the Court said, the trustee’s claim on behalf of the organization has been barred under the doctrine of in pari delicto. (Mosier v. Callister, Nebeker & McCullough, No. 07-4238, 11/13/08.)
Article Archives >> Lead Stories >> November 16-December 15, 2008
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