Sunday, 25 January 2015
Last updated 1 day ago
Apr 10 2013 | 10:26am ET
Wells Fargo will have to defend itself against a slimmed-down lawsuit filed by the court-appointed receiver in the Arthur Nadel hedge fund fraud case.
A federal judge in Florida dismissed four of Burton Wiand's claims against the bank, which he says was "essential" to Nadel's $168 million Ponzi scheme. But U.S. District Judge James Whittemore allowed claims of fraudulent transfer and unjust enrichment to proceed.
Wiand is seeking $60 million from Wells on those claims. He had been seeking up to $168 million.
Whittemore, however, dismissed Wiand's allegation that Wachovia, which Wells acquired just before Nadel's scam collapsed, had "actual knowledge" of the fraud.
Wiand alleges that Wachovia allowed Nadel to set up shadow bank accounts for a decade, allowing him to siphon funds into his own accounts or those of his alleged partners.
Nadel pleaded guilty to fraud in 2011 and died in prison a year ago.
Jan 23 2015 | 1:00pm ET
In our new section, FINtech Focus, we will profile one of these firms each week. While fintech is a broad category, we will be focusing on firms that specifically cater to the alternative investment industry. Read more…