2nd Circuit Panel Affirms Ponzi Scheme Investments Weren’t A Breach Of Duty

(January 3, 2017, 11:01 AM EST) -- NEW YORK — A Second Circuit U.S. Court of Appeals panel on Dec. 8 affirmed a New York federal judge’s dismissal of an Employee Retirement Income Security Act lawsuit brought by pension fund trustees alleging that the fund’s investment manager and its principals knew that investing in a Ponzi scheme was imprudent, saying that the facts did not establish U.S. Constitution Article III standing because there was no cognizable investment loss and a breach of fiduciary duty under ERISA does not constitute an injury in fact sufficient for constitutional standing (Trustees of the Upstate New York Engineers Pension Fund v. Ivy Asset Management, et al., No. 15-31124, 2nd Cir.; 2016 U.S. App. LEXIS 21823)....