In case, Wells Fargo accused of aiding ‘looting’ of USA Capital
LAS VEGAS, NV Jul 08, 2010 (Las Vegas Review-Journal – McClatchy-Tribune Information Services via COMTEX) — Wells Fargo Bank participated in “massive looting” at failed hard-money lender USA Capital, according to allegations in a civil trial that began Wednesday in bankruptcy court.
Bankruptcy Judge Linda Riegle is presiding in the adversary case and will decide whether investors and creditors of USA Capital are entitled to a judgment from Wells Fargo for damages.
The plaintiffs’ attorneys alleged that Wells Fargo assisted in “a massive looting, self-dealing, and related Ponzi scheme” at USA Capital. In a Ponzi scheme, existing investors are paid with money from new investors.
The allegations stem from the handling of 30 bank accounts that USA Capital maintained at Wells Fargo, according to court papers.
To see more of this article, visit this link at the Review-Journal or to subscribe to the newspaper, go to http://www.lvrj.com. Copyright (c) 2010, Las Vegas Review-Journal Distributed by McClatchy-Tribune Information Services. For more information about the content services offered by McClatchy-Tribune Information Services (MCT), visit
www.mctinfoservices.com, e-mail services@mctinfoservices.com, or call 866-280-5210 (outside the United States, call +1 312-222-4544).
Related posts:
- EQUIVENTURE Hospitality Leisure Group Capital Brings Capital Placement Services to Hospitality Leisure Sector
- Republic Business Credit LLC Closes $30m Senior Secured Financing with Wells Fargo Capital Finance
- Injunction Granted in Cape Cod Timeshare Case
- Wells Fargo and Wachovia Asset-Based Lending Businesses to Unite as Wells Fargo Capital Finance
- Devon Trading Standards Brings Charges Against Five Accused Fraudsters
Tell a Friend
