Update:
- Wells Fargo asked a Florida federal judge to dismiss a class action lawsuit claiming it participated in a $300 million Ponzi scheme.
- Wells Fargo argues the class action lawsuit does not sufficiently show it knew about the fraud allegedly perpetrated by Marshal Seeman, Eric Holtz and Brian Schwartz through a number of entities.
- The Wells Fargo class action claims the bank aided and abetted a Ponzi scheme that caused more than 1,000 investors, including many who are elderly, to lose a large amount of their life savings.
Wells Fargo class action lawsuit overview:
- Who: Plaintiff Fanny B. Millstein filed a class action lawsuit against Wells Fargo Bank NA.
- Why: Milstein claims Wells Fargo aided and abetted a Ponzi scheme that caused many elderly investors to lose significant amounts of their life savings.
- Where: The Wells Fargo Ponzi scheme class action lawsuit was filed in Florida federal court.
(June 13, 2024)
A Wells Fargo class action lawsuit alleges the bank aided and abetted a Ponzi scheme resulting in investor losses of more than $300 million.
Plaintiff Fanny B. Millstein says Wells Fargo knew about a scheme perpetrated by Marshal Seeman, Eric Holtz and Brian Schwartz through a number of entities including National Senior Insurance Inc. d/b/a Seeman Holtz (NSI), the Para Longevity Companies (PLCs) and the Centurion Companies.
Each of these companies used Wells Fargo as their primary bank, the Wells Fargo class action lawsuit asserts.
The Wells Fargo Ponzi scheme allegedly consisted of NSI and its agents selling promissory notes offered by the PLCs and secured by collateral through life insurance policies issued to third parties, known as “Stranger-Originated Life Insurance” and “life settlements.”
Investors were allegedly promised the proceeds from the death benefits would fund interest payments and would eventually return the investors’ principal, Millstein explains.
However, the Ponzi scheme perpetrators allegedly used newly invested funds to pay existing investors “and further looted significant sums through improper, exorbitant or fictitious fees and expenses,” the Wells Fargo class action lawsuit says.
Wells Fargo class action says bank knew about scheme for a decade
Millstein says Wells Fargo knew about the alleged Ponzi scheme from 2011 through 2021 yet failed to stop the fraud. Instead, Wells Fargo “chose to substantially assist and profit from it.”
The Wells Fargo Ponzi scheme was reportedly discovered by the Florida Office of Financial Regulations in 2021. A forensic review of relevant books and records showed Wells Fargo knew about and assisted the scheme’s perpetrators.
“Wells Fargo, as the primary depository bank used in the scheme, as well as in its roles as trustee and securities intermediary, effectuated the transactions that enabled the scheme to reach catastrophic levels,” the complaint alleges.
Many victims of the alleged scheme were elderly and they lost a significant amount of their life savings, according to the Wells Fargo class action lawsuit. Millstein says Wells Fargo is liable for all outstanding monies due to the victims for their respective notes.
The Wells Fargo class action lawsuit asserts claims for aiding and abetting breach of fiduciary duties, aiding and abetting fraud and unjust enrichment.
Another recent Wells Fargo class action lawsuit says the bank’s loan application process discriminates against racial minorities.
What do you think about the Wells Fargo Ponzi scheme allegations? Join the discussion in the comments.
Millstein is represented by Seth Miles, David M. Buckner and Brett E. von Borke of Buckner + Miles, Scott L. Silver, Ryan A. Schwamm and Peter M. Spett of Silver Law Group and James D. Sallah and Joshua A. Katz of Sallah Astarita & Cox LLC.
The Wells Fargo Ponzi scheme class action lawsuit is Fanny B. Millstein v. Wells Fargo Bank NA, Case No. 1:24-cv-22142, in the U.S. District Court for the Southern District of Florida, Miami Division.
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41 thoughts onWells Fargo seeks dismissal of class action over $300M Ponzi scheme
Wells fargo has charged overdrafts for monies I pay into my savings for every debit transaction a dollar is transfered from my checking to my savings I had overdraft protection from my saving and my credit card .the problem is that they would hold as many as 15 or more trans actions and transfers and run themtru all at the same time and cause overdraft transfers from my credit card. Till they maxed it out and charge me a 35 dollar overdraft fee . In short they would hold the transfers till my balance was low and transfer the money from my credit card that they would transfer more than was needed to run my card up so I would have to pay high interest for transfers I payed myself they maxed out my credit card to pay myself and when the limit was reached charged me overdraft fees and high interest to pay myself a dollar I pay high interest and a 35 dollar fee. The best part is they never told me I was overdrawn and held the for up to two weeks and run them through when they would have enough to cover them sometimes and not a pending trans action causing the overdraft to happen.
I am currently fighting a fraudulent deed transfer and mortgage through wells Fargo with Ponzi Hernandez’s name on documentation
Add me to the list they definitely do that .
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Please add me to the Wells. Fargo ponzi scheme and any data breach and money they let be taken from my account and blamed me. I was a customer for 25 years. I received a little money from my brothers death benefit in 2018. Then sold my house in 2024. They said I was a security risk, kept a lot of my money, mailed money to an address of my sold house and they kept the money and did not reimburse me for fraudulent charges to my debit checking account.
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