Community First Bank v. First United Funding, LLC

OPINION

CHUTICH, Judge.

Appellant, The National Bank (National Bank), appeals the district court’s distribution of funds recovered from a Ponzi scheme under a net-investment distribution method. Because the district court did not abuse its discretion in selecting that method, we affirm.

FACTS

Beginning in 2002, First United Funding, LLC (First United) and Corey Johnston sold loan participations to banks, promising impressive returns. A loan participation is a common banking practice in which a bank participant provides funds to a lender, which then lends the funds to a borrower. First United and…