Bank On It: The Sixth Circuit Holds Regions Bank Not Liable For An Investment Advisor’s Scheme to Defraud

The Sixth Circuit recently issued a decision that commercial banks around the country will applaud.  In McLemore v. EFS, Inc., Nos. 10-5480/5491, (6th Cir. June 8, 2012), the Court dismissed both ERISA and state law claims brought by former clients of an investment advisor who swindled millions of dollars from employee benefit plans, finding that Regions Banks –which held the client funds as the depository bank — was not a fiduciary.

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