The U.S. Court of Appeals for the Eleventh Circuit ruled that a receiver appointed for a closely held corporation does not have standing to recover tort damages from third parties alleged to have aided and abetted a fraud tied to a Ponzi scheme.

The Court of Appeals this week ruled in favor of JPMorgan Chase Bank against Amir Isaiah, the court-appointed receiver for two entities whose principals allegedly engaged in a Ponzi scheme: Coravca Distributions and Timeline Trading, according to the opinion.

The principals of the two Miami-based companies told investors they could reap huge profits by trading in Venezuelan and U.S. currency, the opinion stated. Isaiah sued JPMorgan Chase Bank, as he sought to recover funds that were fraudulently diverted from Coravca and Timeline bank accounts in connection with the Ponzi scheme.