Bond Insurer Hits Wells Fargo With Real Estate Suit

Law360, New York (January 5, 2011, 1:40 PM EST) -- A bond insurer has accused Wells Fargo Bank NA and KeyBank NA of aiding a real estate developer's scheme to divert funds from promised infrastructure improvements that forced the insurance company to shell out $14 million to complete the construction.

Bond Safeguard Insurance Co. on Tuesday filed suit against Wells Fargo as a successor to KeyBank and Wachovia Corp. in the U.S. District Court for the Southern District of Georgia, seeking to recoup the funds it has paid toward the infrastructure projects.

The suit relates to...
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