Wells Fargo, Greenberg Traurig Aided and Abetted Ponzi Scam, Investor Says
Wells Fargo, Greenberg Traurig Aided and Abetted Ponzi Scam, Investor Says
OAKLAND, Calif. (CN) - A class action claims that a brokerage firm's Ponzi scheme, aided and abetted by Wells Fargo Capital Finance and the Greenberg Traurig law firm, cost investors "hundreds of millions" of dollars.
Lead plaintiff David Nolan sued Wells Fargo Capital Finance, Wells Fargo Foothill and Greenberg Traurig, of New York, in Alameda County Court.
Nolan alleges seven causes of action, including fraud by concealment, fraud by misrepresentation, aiding and abetting fraud and breach of fiduciary duty, and secondary liability for securities fraud.
From 2002 to 2007, Nolan says, he and other investors saw great returns on their investments in the now-bankrupt RE Loans, a brokerage firm that secured developer loans by holding liens on real estate throughout California. The developer loans were funded by Nolan and other investors who purchased membership interests in RE Loans' fund.
http://www.courthousenews.com/2012/02/01/43526.htm
