Wells Fargo Agrees To $3.75 Million Deal Concluding Ponzi-Aid Dispute

Posted on July 1st, 2022 at 1:16 PM
Wells Fargo Agrees To $3.75 Million Deal Concluding Ponzi-Aid Dispute

From the Desk of Jim Eccleston at Eccleston Law:

Investors who alleged that Wells Fargo aided and abetted a real estate Ponzi scheme have asked a California federal judge for permission to proceed with a $3.75 million settlement. 

The scheme, which was perpetuated by Jerome Cohen, Shaun Cohen, and EquityBuild Inc., generated at least $135 million from hundreds of investors, according to the SEC. 

EquityBuild investors have accused Wells Fargo of aiding and abetting the Ponzi scheme, which utilized the bank to wire, commingle, and disburse investor funds. In 2020, Judge Haywood Gilliam permitted investors to pursue some claims after finding that the SEC’s complaint raised plausible allegations that Wells Fargo had knowledge of the purported scheme and provided substantial assistance. 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, regulatory and disciplinary matters.

Tags: eccleston, eccleston law, wells fargo, ponzi

Return to Archive

TESTIMONIALS

Previous
Next

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

December 5, 2024
SEC Charges Boca Raton Advisor with $2.1 Million Fraud Scheme

The U.S. Securities and Exchange Commission (SEC) has charged David Kushner, a Boca Raton, Florida resident, and his company, La Mancha Funding Corp., with defrauding nearly two dozen investors out of approximately $2.1 million.

December 4, 2024
Wells Fargo Advisors Ordered to Pay $500,000 for Misuse of Former Advisor's Name

Wells Fargo Advisors must pay nearly $500,000 in damages to Nicholas Takahashi, for allegedly using his name on their website long after he left for a competitor.

December 3, 2024
Client Associates Sue Firms Over Discrimination and Wrongful Termination

Three former client associates have accused major financial institutions—Charles Schwab, Morgan Stanley, and Ameriprise Financial—of wrongful termination.