Wells Fargo Fires Back At MedCap Ponzi Class Action

Law360, Los Angeles (March 11, 2013, 9:57 PM EDT) -- Wells Fargo NA asked a California federal judge on Monday to throw out a consolidated class action alleging it breached its contract with noteholders by disbursing their funds to Medical Capital Holdings Inc. in MedCap's $1 billion Ponzi scheme, arguing it wasn't contractually required to notify investors of irregularities until the accounts defaulted.

At a hearing before U.S. District Judge David O. Carter in Santa Ana, Calif., John W. Spiegel, a lawyer representing Wells Fargo, argued that the bank was not liable to the class of...
To view the full article, register now.

UK Financial Services

UK Financial Services

Read Our Latest UK Financial Services Coverage

Financial Services Law360 UK provides breaking news and analysis on the financial sector. Coverage includes UK and European Union policy, enforcement, and litigation involving banks, asset management firms, and other financial services organizations.