We had all our money stolen in a Ponzi scheme. Instead of depositing our money into the investment account, the broker put it into his personal account. This money was used for collateral for loans at another bank. What is the loaning bank's liability to secure the collateral that was supposed to be held in the first bank's account. Shouldn't the loaning institution be responsible for confirming that said collateral was actually in the bank from which the money was stolen?
Yes, a secured lender would, as a best practice, verify the existence of and value of its collateral. If you are considering an attempt to recover funds from the second bank, you should consult an attorney. Along with other things, a court would consider is whether the second bank attempted to verify its collateral and whether it was also duped by the operator of the Ponzi scheme.
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Yes, a secured lender would, as a best practice, verify the existence of and value of its collateral. If you are considering an attempt to recover funds from the second bank, you should consult an attorney. Along with other things, a court would consider is whether the second bank attempted to verify its collateral and whether it was also duped by the operator of the Ponzi scheme.