Wells Fargo To Pay $105M Over MedCap Ponzi Scheme

Law360, Los Angeles (April 30, 2013, 10:11 PM EDT) -- In the latest settlement arising out of an alleged $1 billion Ponzi scheme, Wells Fargo Bank NA agreed Tuesday to pay $105 million to investors who alleged it breached its duties as a trustee by handing out their funds to Medical Capital Holdings Inc.

The settlement followed an unsuccessful bid by Wells Fargo to persuade a California federal judge to dismiss the consolidated class action. In an April 2 ruling, U.S. District Judge David O. Carter rejected the banking giant's argument that it did not have...
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