We write today about an action filed by a court-appointed receiver against a law firm that seeks damages on behalf of investors in various mortgage hedge funds that were allegedly operated as a Ponzi scheme by Life’s Good, Inc. and Robert Stinson, Jr. The receiver’s complaint alleges that the law firm "knew or should have known about the financial condition of Stinson and [Life’s Good]" at the time when the law firm was "receiv[ing] large distributions from Stinson and [Life’s Good] in the form of both checks and wire transfers." Additionally, the complaint alleges that services provided by the law firm to Mr. Stinson and Life’s Good "facilitated and advanced Stinson’s fraudulent scheme."

 

Source: Financial Fraud Alert
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