Wells Fargo, BNY Mellon To Pay $106M In MedCap Settlement

Law360, New York (June 11, 2012, 9:46 PM EDT) -- The receiver for Medical Capital Holdings Inc. on Monday unveiled a $106 million settlement he reached with Wells Fargo Bank NA and Bank of New York Mellon that resolves allegations that they were complicit in the company’s Ponzi scheme.

Receiver Thomas A. Seaman said in a declaration of support for the court’s approval of the deal under which Wells Fargo agreed to pay $49 million and BNY Mellon would pay $57 million, with both companies waiving their indemnity claims against the receivership estate.

The banks, which...
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