Wells Fargo Recovers Premiums In Procedural Twist

Law360, New York (August 5, 2010, 5:06 PM EDT) -- In a procedural wrinkle a federal judge called "odd," Wells Fargo Bank NA will fully recover about $324,000 in premiums paid on a fraudulent $4 million life insurance policy despite losing its bid to rescind the policy.

While plaintiff Wells Fargo, trustee for the insurance trust that purchased the policy, did not have the right to rescind, defendant American National Insurance Co. could — and did — rescind the policy, though not on the terms it may have wanted to, Judge Dean D. Pregerson of the...
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