‘Bank to the Stars’ Facing $770,000,000 Lawsuit for Allegedly Aiding Ponzi Scheme, Ignoring Glaring Red Flags: Report – Crypto News – Crypto News
Connect with us
'Bank to the Stars' Facing $770,000,000 Lawsuit for Allegedly Aiding Ponzi Scheme, Ignoring Glaring Red Flags: Report 'Bank to the Stars' Facing $770,000,000 Lawsuit for Allegedly Aiding Ponzi Scheme, Ignoring Glaring Red Flags: Report

others

‘Bank to the Stars’ Facing $770,000,000 Lawsuit for Allegedly Aiding Ponzi Scheme, Ignoring Glaring Red Flags: Report – Crypto News

Published

2 years ago

on

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. But in reality, Horwitz never sold any movie rights to the streaming services and used the money to fund his luxurious lifestyle and satisfy earlier investors.

The lawsuit claims that between 2013 and 2019, the lender processed $1 billion in transactions for Hortwitz, 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. According to the lawsuit, City National Bank knew that Horwitz bragged about his relationship with the lender in the documents he shared with investors.

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.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending