Wells Fargo Can Be Sued Despite $49M Ponzi Scheme Deal

Law360, New York (January 23, 2013, 7:34 PM EST) -- A California federal judge said Tuesday that investors who lost money in a massive Ponzi scheme at Medical Capital Holdings Inc. can sue Wells Fargo NA for breaching its duties as a trustee, ruling that a receiver's proposed $49 million settlement with the bank might not protect their interests.

U.S. District Judge David O. Carter's ruling keeps alive three class actions brought by investors who purchased promissory notes from MedCap and its subsidiaries that are now allegedly in default to the tune of over $1 billion....
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