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Zions discloses additional Ponzi scheme lawsuits

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Zions discloses additional Ponzi scheme lawsuits

Zions Bancorp. disclosed two new civil suits related to allegations that the bank conspired with a Ponzi scheme, according to the bank's second-quarter Form 10-Q.

Both suits allege the bank is liable for losses stemming from investors' stakes in International Manufacturing Group, which was a customer of the bank and which they allege was a Ponzi scheme. They also allege that the bank conspired with and knowingly assisted IMG and its principal in furthering the scheme.

The first suit, JTS Communities v. CB&T, Jun Enkoji and Dawn Satow, was brought in the Superior Court of California, Sacramento County, in June 2017. The second suit, Evans v. CB&T, is a civil class-action lawsuit representing up to 50 investors and was brought in the Eastern District of California in May 2017.

The bank also disclosed that it is evaluating at least $275 million in noncancelable net operating lease payments ahead of lease accounting changes slated to go into effect in 2019. Its implementation team is gathering key lease data elements to meet the new guidance, and will implement new lease software that will accommodate the change.