Judge Certifies Class Against Coldwell in $55M Scam

Law360, Los Angeles (March 26, 2012, 4:21 PM EDT) -- A California federal judge Monday tentatively certified a class of investors who claim Coldwell Banker Real Estate Corp. let a disreputable real estate investment company leverage Coldwell’s reputation to sell $55 million in fake securities, saying declarations showed sales representatives repeatedly used Coldwell’s name.

U.S. District Judge Andrew J. Guilford tentatively rejected Coldwell’s argument that differences in over-the-phone sales pitches that about 1,600 investors heard before dumping money into the alleged Ponzi scheme meant each investor’s reliance on the purported misrepresentations needed to be evaluated individually...
To view the full article, register now.