Lessons from the PFI Ponzi scheme

When California businessman Kenneth Casey died in 2020, he left behind a Ponzi scheme that defrauded more than 1,200 investors. Those investors sued Casey’s lender, Umpqua Bank, accusing it of being a partner in the scheme. In March 2025, Umpqua agreed to pay $55 million to those investors. Here, the author details the scheme, the litigation that followed and how banks can strengthen their due diligence procedures to avoid accusations of fraud.