This case involves a group of investors that invested in an investment firm that turned out to be perpetrating a Ponzi scheme. The principal of the investment firm had previously been convicted of fraud. The firm banked with the bank in question and used them to facilitate the fraud. The bank processed transactions for the firm that were irregular and inconsistent with an investment fund, allowing the accounts to be consistently overdrawn by millions of dollars, and waiving fees for the benefit of the firm when checks written against its accounts were returned for insufficient funds. Thus, it was alleged that the bank was negligent and knowingly assisted with the fraud.