Lamm Ex Rel. Ira v. State Street Bank & Trust

JORDAN, Circuit Judge:

This appeal mainly concerns what duties a custodian bank has under New York and Florida law to protect a customer from fraudulent transactions carried out by the customer’s investment advisor. We hold that, under the facts alleged here, the custodian bank breached no duty, contractual or otherwise, by accepting on behalf of its customer securities that later turned out to be fraudulent and listing those securities on monthly account statements issued to the customer. We therefore affirm the district court’s dismissal of the customer’s complaint.

I

We briefly restate the…