Hollister & Brace has filed a Class Action lawsuit against ZB, N.A., doing business as California Bank & Trust, (CB&T) in the United States District Court for the Eastern District of California. The Complaint alleges that CB&T knowingly provided substantial assistance to a $125,000,000 fraud initiated by International Manufacturing Group, Inc. (IMG).
IMG misled investors into believing their funds would be used for IMG’s purchase and importation of “wholesale” batches of latex surgical gloves and other medical supplies. Unbeknownst to the investors, IMG’s “wholesale” business was non-existent and a complete fraud.
The Complaint alleges that: (i) CB&T knew that IMG’s “wholesale” business was a fraud; (ii) nonetheless, CB&T provided IMG with substantial assistance by, among other things, allowing funds from defrauded investors to be deposited in CB&T accounts and by disbursing those funds from CB&T accounts in accord with IMG’s instructions; and (iii) but for CB&T’s assistance, the Plaintiffs would not have been victimized by IMG’s fraud.