Wells Fargo's Suit Over Fraudulent Policies Stands

Law360, New York (April 23, 2009, 12:00 AM EDT) -- Wading into a tangled dispute over $7.5 million of fraudulent life insurance policies, a federal judge has refused to toss Wells Fargo Bank NA’s bid to force Principal Life Insurance Co. to return the premiums two insurance trusts paid for the policies.

On Wednesday, Judge Dean D. Pregerson of the U.S. District Court for the Central District of California thwarted Principal’s attempt to dismiss or stay the action in favor of a linked proceeding, where the insurance company is suing Wells Fargo to retain the $336,000...
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