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(Caproni said the class action failed to state a claim against BNY Mellon, which argued that it was a victim of the fraud, not a participant.) The ruling seems to leave plaintiffs without a case, since, according to the judge, all of the other defendants who are named in the investor complaint have defaulted.
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Plaintiffs lawyers Donald Enright and Adam Apton of Levi & Korsinsky and John Carriel of Zelle didn’t respond to my email query on Caproni’s ruling, which also dismissed class claims against Bank of New York Mellon Corp for allegedly aiding the laundering of OneCoin money. “Plaintiffs’ jurisdictional allegations are doomed by multiple failures of law, and, therefore, additional discovery would not cure the jurisdictional defects.” “This case has been ongoing for over two years, plaintiffs have had the assistance of a cooperator who played a central role in the OneCoin scheme, and they are on their third iteration of the complaint,” Caproni wrote. The judge, who was clearly exasperated with lawyers for the class, denied their request for discovery to bolster their jurisdictional arguments. District Judge Valerie Caproni of Manhattan concluded that despite all of the details about international intrigue in the investors’ complaint – including allegations from a cooperating witness in the OneCoin criminal investigation – the class action faltered at the very first step: Plaintiffs lawyers, she said, had utterly failed to establish New York’s jurisdiction over Scott and the other lawyers. So did the two other lawyers who allegedly helped him launder OneCoin’s ill-gotten billions, David Pike and Nicole Huesmann. On Monday, Scott won the dismissal of all of the OneCoin investors’ claims. Investors have now lost any chance to prove those allegations. Investors lost hundreds of millions, if not billions, of dollars, the complaint alleged, because of the lawyers' participation. But the complaint contends that the lawyers were responsible for perpetuating the OneCoin fraud by routing investors’ money through offshore funds. Scott and the other lawyers – one of whom is also facing federal criminal charges in Manhattan – didn't come up with the alleged scheme. The complaint laid out the alleged international hoax, in which a Bulgarian woman known as the “Cryptoqueen” teamed up with a marketing whiz to sell investors materials that would purportedly allow them to mine for what turned out to be a non-existent cryptocurrency called OneCoin. So it’s not exactly surprising that when investors filed a 69-page amended complaint last September in their class action in Manhattan federal court, plaintiffs lawyers from the firms Levi & Korsinsky, Zelle, and Silver Miller highlighted the role that Scott and two lawyer colleagues allegedly played in the pyramid scheme. Prosecutors, after all, had portrayed the lawyer, Mark Scott, as an integral part of the so-called OneCoin fraud, alleging that he spent the $50 million he reaped from the scheme on seaside real estate, fancy cars and a million-dollar yacht. (Reuters) - A onetime Locke Lord partner who was convicted in Manhattan federal court in 2019 for laundering about $400 million in an alleged $4 billion cryptocurrency Ponzi scheme must have seemed like a big fat target to the plaintiffs lawyers litigating a fraud class action on behalf of investors in the scheme. We welcome feedback, which you can provide using the feedback tab on the right of the page.
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