Ponzi Scheme Operator Collaterally Estopped From Denying Liability, Panel Holds

Mealey's (April 24, 2018, 1:53 PM EDT) -- NEW YORK — A Second Circuit U.S. Court of Appeals panel on April 20 ruled that a defendant in a securities fraud lawsuit filed by the Securities and Exchange Commission was collaterally estopped from denying his liability in the instant action based on his guilty plea in a related criminal proceeding, affirming a federal district court’s grant of summary judgment in favor of the SEC (United States Securities and Exchange Commission v. Francisco Illarremendi, et al., Nos. 17-1506, 17-1893 and 17-2551, 2nd Cir., 2018 U.S. App. LEXIS 9948)....