Wells Fargo is facing a lawsuit accusing it of enabling an alleged $300 million Ponzi scheme that defrauded over 1,000 victims.
Background
In July 2021, Florida regulators filed a complaint against insurance company Seeman Holtz for selling unregistered securities and using investor funds to pay off earlier investors.
Wells Fargo’s Role
The lawsuit alleges that Wells Fargo opened 31 bank accounts for Seeman Holtz companies and oversaw transactions between them. The plaintiffs claim that the bank should have known about the fraudulent activity because it was “on both sides of the scheme.”
Specific Allegations
The lawsuit accuses Wells Fargo of:
- Knowing or should have known about the Ponzi scheme
- Allowing companies to commingle and transfer investor funds without legitimate purpose
- Unjust enrichment, negligence, and aiding and abetting fraud
Victims and Damages
The scheme targeted over 1,000 victims, including seniors and investors who lost their savings. The plaintiffs are seeking compensation from Wells Fargo, including:
- Return of all income and fees from the scheme
- Interest and other costs
Wells Fargo has not yet commented on the lawsuit.
