Handling Aiding And Abetting Claims In New York
Victims of fraud and breaches of fiduciary duty often have the right to bring claims against those who aid and abet the fraud or breach. While only the Securities and Exchange Commission (not private litigants) may bring an action for aiding and abetting federal securities fraud, victims can make use of New York state causes of action to seek recovery from those who help the primary damage-causing party.
For claims of fraud, an aider and abetter can be held liable for the primary party’s fraud if the helper had knowledge of the fraud and provided substantial assistance in carrying out the fraudulent scheme. Likewise, an aider and abetter can be held liable for the primary party’s breach of fiduciary duty if he or she had knowledge of the duty and either substantially assisted or procured the breach.
Claims of aiding and abetting are useful where the primary actor cannot pay a judgment (as will usually be the case when a Ponzi scheme implodes). This means that if you are successful in your case, you will still have an opportunity to recover compensation for the harm that has been caused.
The experienced trial lawyers at Ford O’Brien Landy LLP can help you determine whether you have viable aiding and abetting claims or exposure to aiding and abetting liability, and represent you throughout the course of litigation. Our attorneys have successfully handled a number of these types of cases, and will provide you with strong representation inside and outside of the courtroom.