Wells Fargo, Greenberg Face Suit Over Investor Scheme

Law360, New York (February 1, 2012, 9:47 PM EST) -- Investors in a now-bankrupt California brokerage firm filed a putative class action Monday claiming Greenberg Traurig LLP and a Wells Fargo & Co. unit engaged in a scheme to defraud investors and hide the broker's illiquidity.

In a complaint filed in California court, RE Loans LLC investors — who number about 1,400 and collectively lost more than $700 million when the broker filed for bankruptcy — say the law firm, which represented both RE Loans and Wells Fargo Capital Finance Inc., organized a $50 million loan...
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