Banking Institution Sued Over Alleged Ties to Hollywood Ponzi Scheme 😮
A prestigious lender dubbed the “bank to the stars” is facing a hefty lawsuit amounting to $770 million. The lawsuit accuses City National Bank (CNB) based in Los Angeles of playing an instrumental role in a Ponzi scheme that targeted a broad spectrum of investors as reported by the Los Angeles Times.
- The lawsuit centers on allegations that CNB extended multimillion-dollar loans to Zachary Horwitz, the brains behind a fraudulent film-licensing scheme that defrauded investors of over $690 million.
- The Securities and Exchange Commission (SEC) revealed in February that Horwitz had breached numerous securities laws by luring victims with promises of over 35% returns derived from selling movie rights to prominent streaming services like Netflix and HBO, a claim that turned out to be false.
- It is noted that CNB facilitated around $1 billion in transactions for Horwitz from 2013 to 2019, providing $64.2 million in loans and granting him 456 credit extensions.
Key Allegations against City National Bank ⚖️
The lawsuit pinpoints that CNB blatantly disregarded warning signs and procedural protocols while aiding Hortwitz in his fraudulent dealings. The bank’s actions allegedly lent an air of legitimacy to the Ponzi scheme he operated over the years and enhanced his predatory activities.
- City National Bank was fully aware of Horwitz’s claims of a close relationship with the lender, which he used as a means to promote his scam in investment materials.
- The plaintiffs insist that CNB should be held liable for the sum of $770 million as reparation for the victims of Horwitz’s scam.
- A representative from the bank declined to comment on the ongoing legal proceedings regarding the issue at hand.
About City National Bank and Its Assets 💰
City National Bank boasts assets totaling over $93.72 billion and a physical presence across 70 locations spanning eight different states. Despite its prominence in the banking sector, the institution finds itself embroiled in a legal quagmire due to its alleged involvement in an elaborate Ponzi scheme orchestrated by Zachary Horwitz.
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The post ‘Bank to the Stars’ Facing $770,000,000 Lawsuit for Allegedly Aiding Ponzi Scheme, Ignoring Glaring Red Flags: Report appeared first on The Daily Hodl.
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