Rosemann v. St. Louis Bank, No. 15-3965 (8th Cir. 2017)Annotate this Case
This case arose from Martin Sigillito's Ponzi scheme known as the British Lending Program (BLP). Plaintiffs, seeking to recoup losses due to the BLP, filed suit against St. Louis Bank, alleging violations of Missouri's Uniform Fiduciaries Law (UFL); aiding and abetting the breach of Sigillito's fiduciary duties; conspiracy to breach Sigillito's fiduciary duties; and conspiracy to violate the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. 1962(d). The Eighth Circuit held that the district court properly denied summary judgment to plaintiffs on their UFL claim where plaintiffs have failed to show that St. Louis Bank had actual knowledge that Sigillito misappropriated fiduciary funds; that St. Louis Bank acted in bad faith; and that St. Louis Bank knew that Sigillito was using the fiduciary funds for his personal benefit. The court also held that plaintiffs' common-law and RICO claims failed because the evidence did not create any genuine issues of material fact. Accordingly, the court affirmed the judgment.