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Did Bank of America (BAC) boost a Ponzi scheme?That’s what a new Florida class action suit says, alleging that BofA “aided and abetted” a $37 million foreign exchange fraud run by disgraced wealth adviser Beau Diamond (pictured) and his investment club Diamond Ventures.
“From the beginning, BOA actively assisted Diamond’s fraudulent scheme,” the suit says, noting the bank’s 32 month alliance with Diamond. “Despite an intimate understanding of Diamond’s fraudulent enterprise, BOA asked no questions and instead bolstered its relationship.”
According to the FBI, Diamond’s forex trading scheme stole from 200 victim investors who contributed nearly $38 million into Diamond’s fund, “all of which was dissipated through Ponzi distributions, losing trades, and diversions to Diamond for his personal benefit.”
Many of the investors lost their live savings and want the money back.
As Courthouse News notes, BofA allegedly facilitated the fraud by allowing offshore wire transfers, commingling of accounts, access to unlicensed trading in foreign exchange markets, and a banking platform that facilitated conversion of investors’ funds. And BofA’s “Premier Bankers” authorised wire transfers of more than $700,000 to Diamond’s personal account, according to the complaint, including charges at big Las Vegas hotel-casinos.
Shirley Norton, a BofA spokesperson, said the bank hadn’t reviewed the suit yet and therefor wouldn’t comment.
Here’s the full thing:
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