Law firms Dilworth Paxson and Greenberg Traurig are facing legal malpractice and ERISA claims over their alleged role in what the U.S. Securities and Exchange Commission has called a fraudulent scheme to divert investment funds using a fake annuity purported to benefit a Native American tribe.
Michelin Retirement Plan and its investment committee sued six individuals who are facing SEC charges for their involvement in the alleged scheme and the investment advisers that bought the bad bonds. They’re also suing the Native American tribe that issued the bonds and the law firms that represented the tribe and its placement agent. Michelin alleged that more than $8 million of their retirement funds were used in the transaction. The case was filed in the U.S. District Court for the District of South Carolina, Greenville Division.
