St. Louis Ponzi Scheme Victims Sue Banks, Law Firm
ST. LOUIS (AP) - Victims of a $56 million Ponzi scheme in St. Louis are suing two banks and a law firm the duped investors say failed to put a stop to long-running financial fraud.
Sixty-five-year-old Martin Sigillito is serving a 40-year federal prison sentence after his 2012 conviction for fraud, conspiracy and money-laundering. The former Clayton lawyer and American Anglican bishop diverted more than $6 million of his investors' money for personal use in an 11-year scam that began in 1999.
The St. Louis Post-Dispatch reports that three federal suits filed in late May alleges that St. Louis Bank and the former Pioneer Bank should have detected Sigillito's illegal activity. Pioneer Bank later merged with National City Bank, which in turn merged with PNC Bank, one of the named defendants.