PI&R Clients Win $95 Million Jury Verdict

April 25, 2023 – A jury in Florida handed down a verdict for $95 Million in a case against Deutsche Bank AG brought by liquidators representing ORC Senior Secured Ltd., GMS Global Market Step Up Note Ltd., Preferred Income Collateralized Interest, Ltd., and SG Strategic Income Ltd., Cayman Island companies that issued notes intended to fund real estate investments in Florida.

The plaintiffs claimed that Deutsche Bank allowed fraudsters who were running a Ponzi scheme to open accounts in the name of a Cayman Islands company named Madison Asset LLC, to transfer millions of dollars’ worth of notes into those accounts, and to wire millions of dollars out of the accounts as part of the Ponzi scheme.  The jury found Deutsche Bank liable for negligence.  Pearson et al. v. Deutsche Bank AG et al., case no. 1:21-cv-22437 in the U.S. District Court for the Southern District of Florida.

Payment Innovation and Regulation LLC provided an expert report and trial testimony for the plaintiffs.