Wells Fargo is facing a class action lawsuit action in Wells Fargo Ponzi scheme lawsuit. In the lawsuit, it is alleged that Wells Fargo bank took part in a $300 million Ponzi scheme between the years of 2011 and 2021. The lawsuit claims that the scheme affected more than 1000 investors who were mainly senior citizens who were left without any proper savings.
In the lawsuit it was claimed that Wells Fargo had full knowledge regarding the fraudulent activities which took part between the years of 2011 to 2021. The bank is accused of providing substantial assistance to the perpetrators of the Ponzi scheme for benefits that they reaped from the scam.
The Wells Fargo Ponzi scheme Lawsuit Accusations
The Wells Fargo Ponzi scheme lawsuit was filed in May 2024 and accuses Wells Fargo bank of assisting which abetted the a big Ponzi scheme which targeted over 1000 investors many of whom were elderly women.
In the scheme, it is alleged that criminal elements like Marshal Seeman, Brian Schwartz and Eric Holtz used Wells Fargo as their main bank in carrying out their Ponzi scheme. The perpetuators of this scheme promised their victims high returns on their investment backing them with life insurance policies. Instead of honouring these promise, the aforementioned individuals used the money obtained from investors to pay old investors.
The Role of Wells Fargo in the Ponzi scheme
The Wells Fargo Ponzi scheme lawsuit implicates the wells Fargo bank for what it calls the role the bank played in the entire scheme. In the lawsuit, it is claimed that the wells Fargo bank was aware of the scheme during the years of 2011 to 2021 but chose not to act on it. Instead, Wells Fargo targeted the benefits that came with the flow of funds in the Ponzi scheme which included account and transaction fees associated with the scheme.
The Wells Fargo Ponzi scheme Lawsuit Settlement Demands
The plaintiffs in the Wells Fargo Ponzi Scheme are demanding that financial compensation for all the victims who lost money in the Ponzi scheme. Through the wells Fargo Ponzi scheme, the plaintiffs are looking for a figure in the region of $300 million as settlement in the lawsuit. Through the lawsuit, the plaintiff argues that the Wells Fargo bank was reckless in the handling of the scheme and avoided raising alarm or taking any action that could have stopped the scheme.
This, the plaintiff claims was done with the view of gaining from the scheme at the expense the clients’ money. This act in the words of the plaintiff was a clear act of selfishness which saw Wells Fargo pursues their own selfish interests at the expense of other people’s welfare.
Wells Fargo Response to the Wells Fargo Ponzi scheme
Wells Fargo is yet to respond to the Wells Fargo Ponzi scheme lawsuit and give a feedback of their own on the nature of the lawsuit and the allegations contained therein. As such, it is difficult to tell whether they will agree to the allegations placed in court against them or will refute them and take the matter all the way to court. The lawsuit is still in its early stages as of now with little details about it available in the limelight.
