This case involves a man who purchased a private banking franchise in the California through a partnership with two family trusts. The partnership operated a bank and the principle activity of the partnership was to provide financial support to ventures involving the acquisition of companies. The exclusive lender to the acquisition venture deals was a local bank. The partnership and the local bank became involved in an investment enterprise that was to offer $40 million in shares and limited partnership units to investors in management buyout opportunities. Two of the local bank’s entities and the man’s bank were to serve as placement agents for the offering and a corporation was retained as the manager of the offering. The man was one of the four shareholders in the corporation and he was supposed to serve as one of the corporation’s officers during its management contract with the investment enterprise. The local bank was to serve as a financial consultant in the investment enterprise. The local bank decided to recommend a bank customer of high valuation (a securities company) as a new potential partner for the man in the investment enterprise. The man later discovered that the securities company had a “creditworthiness” issue in the past. He consulted the local bank about this and they assured him that it had conducted due diligence on the securities company and that they were highly-valued bank customers. The man later formed a partnership with the securities company. Soon after, one of the partners of the securities company ousted the man from his bank in breach of his management contract and the partnership agreement. The securities company also committed securities tax fraud, which drove the man’s bank into insolvency. The man learned that the local bank had concealed the fact that it had previously terminated its credit relationship with the securities company for committing fraud on the local bank.