Alvarez v. United States

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Plaintiffs are current and former federal law enforcement employees and their spouses who were deceived into investing in a Ponzi scheme presenting as the Federal Employee Benefits Group (FEBG). Plaintiffs filed suit against the Government under the Federal Tort Claims Act (FTCA), 28 U.S.C. 1346(b)(1), for negligent conduct and aiding and abetting the scheme. The Eleventh Circuit affirmed the district court's grant of the Government's motion to dismiss based on lack of subject matter jurisdiction and held that the misrepresentation exception applied to bar plaintiffs' claim. In this case, plaintiffs' claims arose out of Kenneth Wayne McLeod's misrepresentations about his bond fund. McLeod founded and ran the FEBG Bond Fund. View "Alvarez v. United States" on Justia Law