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Wells Fargo Must Face Claims It Aided Alleged Ponzi Scheme

April 8, 2020, 6:00 PM

Wells Fargo Bank NA must continue to face investors’ proposed class claims that it aided and abetted fraud and breach of fiduciary duty in connection with an alleged Chicago real estate Ponzi scheme, a federal court in California said.

Annie Chang and other investors sued Wells Fargo in connection with a purported investment scheme conceived by non-parties Jerome and Shaun Cohen and their entities Equitybuild Inc. and Equitybuild Finance.

The plaintiffs raised plausible allegations that Wells Fargo had direct knowledge of the alleged fraud and gave substantial assistance to the Cohens and Equitybuild, the U.S. District Court for the Northern...

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