Elghossain v. Bank of Audi, et al. was filed in the Southern District of New York on March 11, 2021, claiming that Plaintiffs were victims of a Ponzi scheme within the Lebanese banking system.
Plaintiffs are a married couple—both citizens and residents of the United States. The defendants are two Lebanese banks, Bank Audi and Banque Du Liban.
Plaintiffs allege that Defendant Bank Audi lured them into investing their money (in U.S. Dollars) in deposit accounts with the bank and in exchange would receive interest on the deposited amount. However, Bank Audi allegedly coerced Plaintiffs into converting their deposits to Lebanese currency based on a “pegged” exchange rate, purportedly at the time the bank fell behind on submitting interest payments to depositors. Plaintiffs allege this is due to the Ponzi-like structure of investments within the bank deposit accounts. Plaintiffs allege that Bank Audi colluded with Banque Du Liban to commit a Ponzi scheme that ultimately prevented Plaintiffs from withdrawing the funds in their deposit account. After many complaints and disputes with Bank Audi, the Elghossains filed this suit pro se.
Specifically, the complaint alleges that Bank Audi participated in a civil conspiracy to perpetrate the scheme, that Bank Audi perpetrated fraud by inducing Plaintiffs into depositing their money, that Bank Audi breached a contract with Plaintiffs when it failed to provide the banking services and interest payments promised, that both banks committed conversion or that Bank Audi was otherwise unjustly enriched by its actions, and that both banks are liable for racketeering violations. The Elghossains seek compensatory and treble exemplary damages incident to their statutory claims.