Wells Fargo Must Pay Telecom Cos. $1.7M In Diverted Funds

Law360, New York (August 3, 2017, 2:29 PM EDT) -- A group of seven unpaid telecom subcontractors has won a $1.7 million judgment against Wells Fargo in New York federal court after suing the bank to recoup payment held in a bank lock box from a now-defunct contracting firm that installed communications equipment in New York City schools.

Following a bench trial, District Judge Leonard Wexler on Monday found Wells Fargo and a related institution liable under state lien law for funds diverted from telecommunications firm Teltronics Inc.'s bank lock box to pay off its loans rather than the subcontractors. The court dismissed the bank's assertion that it took no part...

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