In today’s Fraud Notes, we examine two recent appellate court decisions that highlight the role statutes of limitations play in fraud-based claims. Specifically, we explore how New York courts evaluate timeliness under CPLR 213(8), including the six-year limitations period and the two-year discovery rule, as well as the three-year limitations period governing General Business Law § 349 claims.

This Blog has written about Ponzi schemes on numerous occasions. A Ponzi scheme is a type of investment fraud where returns to earlier investors are paid using investment capital from new or existing investors, rather than from legitimate profits earned through the enterprise’s business activities.

A claim for fraud requires “a material misrepresentation of a fact, knowledge of its falsity, an intent to induce reliance, justifiable reliance by the plaintiff and damages.” In First Trinity Life Ins. Co. v. Advance Funding LLC, 2025 N.Y. Slip Op. 03133 (1st Dept. May 22, 2025), discussed below, knowledge of falsity (i.e., scienter) and reliance were the elements at issue.