Wells Fargo Advisors Must Face TelexFree Ponzi Scheme Case

Wells Fargo Advisors LLC is still on the hook in the TelexFree Ponzi scheme case after a federal judge dismissed all but one claim against the firm June 25.

The would-be class of injured TelexFree investors can’t pursue an unjust enrichment claim against Wells Fargo, but properly alleged the brokerage firm helped carry out the scam, the U.S. District Court for the District of Massachusetts said, partially dismissing the case.

The TelexFree scam ran from 2012 to 2014 and involved about 2 million people, around half of whom lost their investments, the order said. The putative class sued dozens ...