Investors Sue Over Valley Trading Scam

Investors who lost $95 million to Midland Euro Exchange Inc., a San Fernando Valley-based trading scam, have sued a British bank and brokerage and a Los Angeles accounting firm, alleging in the L.A. County Superior Court complaint that the financial firms aided and abetted the perpetrators of the fraud.

Zvi Leichner and his father, Moshe Leichner, who ran the commodities futures operation, were sentenced to federal prison last year for their roles in defrauding more than 300 investors in the U.S., Canada, Saudi Arabia and Israel.

In the lawsuit, filed Monday, lead plaintiff Ralph Gonzales seeks court authorization to represent the entire class of investors in Midland Euro. The suit seeks damages from Lloyds TSB Bank, London futures broker Man Financial Ltd. and Encino-based Kaplan, Swicker & Simha Accountancy Corp. The defendants didn’t immediately respond to requests for comment.

-- E. Scott Reckard.