tl;dr
City National Bank (CNB) is facing a $770 million lawsuit for allegedly aiding a Hollywood Ponzi scheme. The lawsuit accuses the Los Angeles-based lender of enabling a fraudulent scheme that defrauded investors of over $690 million. The plaintiffs claim CNB provided millions of dollars in loans and ...
City National Bank (CNB) is facing a $770 million lawsuit for allegedly aiding a Hollywood Ponzi scheme. The lawsuit accuses the Los Angeles-based lender of enabling a fraudulent scheme that defrauded investors of over $690 million. The plaintiffs claim CNB provided millions of dollars in loans and credit extensions to the mastermind of the scheme, ignoring red flags and bending rules to legitimize the operation. The bank allegedly processed $1 billion in transactions for the individual behind the scheme and issued $64.2 million in loans. The plaintiffs seek $770 million in damages for the victims. City National Bank has declined to comment on the ongoing litigation.
A lender known as the “bank to the stars” is being sued for $770 million for allegedly aiding and abetting a Hollywood Ponzi scheme. Plaintiffs for the lawsuit accuse the Los Angeles-based lender City National Bank (CNB) of enabling a fraudulent scheme that bilked hundreds of investors, reports the Los Angeles Times. The lawsuit alleges CNB provided millions of dollars in loans to Zachary Horwitz, the mastermind of a film-licensing scheme that fleeced more than $690 million from friends, family and other investors.
In February, the Securities and Exchange Commission (SEC) announced Horwitz had been convicted of violating multiple securities laws for duping victims with claims that investors would see more than 35% returns from his business of selling movie rights to Netflix and HBO. The lawsuit claims that between 2013 and 2019, the lender processed $1 billion in transactions for Horwitz, issued $64.2 million in loans, and gave him 456 credit extensions. The bank also allegedly ignored “glaring red flags” and “bent the rules” for Horwitz throughout the years while substantially assisting him by “adding an air of legitimacy” to his Ponzi scheme.
The plaintiffs are asking the court to order CNB to pay $770 million to victims of Horwitz’s scheme. A spokesperson at the lender says the bank won’t comment on ongoing litigation. City National Bank has more than $93.72 billion in assets with 70 locations across eight states.
More about GameStop Corp
GameStop Corp Technical Analysis Summary
Company: GameStop Corp
Headquarters: Grapevine, Texas
Sector: Trade & Services
Industry: Retail-Computer & Computer Software Stores
Market Cap: $10.42 billion
Current Price: $1483.5
Dividend Yield: None
Price/Earnings Ratio: 0.02
EPS: 17.28
Beta: 0.0013
Volume: 5,272,800,000
Revenue: $6.38 billion
Operating Margin: 25.9%
Net Margin: -19.4%