Wells Fargo Escapes $16M Suit Over Real Estate Scheme

Law360, New York (October 24, 2011, 3:16 PM EDT) -- A Georgia federal judge on Friday tossed a suit accusing Wells Fargo NA and KeyBank NA of costing two bond insurers more than $16 million by aiding a real estate developer's scheme to divert funds from promised infrastructure improvements.

Plaintiffs Bond Safeguard Insurance Co. and Lexon Insurance Co. alleged that developer Land Resource LLC staged the appearance of promised infrastructure improvement work to induce potential customers to purchase lots at certain real estate housing subdivisions, and that the banks, which provided commercial loans for these projects,...
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Case Information

Case Title

Bond Safeguard Insurance Company et al v. Wells Fargo Bank, N.A. et al

Case Number



Georgia Southern

Nature of Suit



Lisa G. Wood

Date Filed

January 4, 2011

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