Wells Fargo Can't Nix Equitybuild Ponzi Scheme Claims

Law360 (April 8, 2020, 4:20 PM EDT) -- Wells Fargo must face the bulk of a proposed investor class action accusing it of facilitating a yearslong, $135 million Ponzi scheme carried out by real estate investment firm Equitybuild Inc. and its father-son owners, a California federal judge has ruled.

On Tuesday, U.S. District Judge Haywood S. Gilliam Jr. threw out a negligence claim against the bank, finding that it did not owe a duty of care to the investors because they are not Wells Fargo customers. But he preserved the aiding and abetting fraud claim and the aiding and abetting breach of fiduciary duty claim, finding the assertions were...

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