Wells Fargo Facing $300 Million Civil Lawsuit for “Aiding and Abetting” Ponzi Scheme

According to reporting from the Sun Sentinel, Wells Fargo—the large San Francisco-based financial services company—is facing a $300 million civil lawsuit for its alleged role in “aiding and abetting” a Ponzi scheme. The underlying scheme relates to Seeman Holtz insurance company. Here, our Miami Ponzi scheme attorney discusses the case in more detail.

Background: Alleged Securities Law Violations By Seeman Holtz

 Seeman Holtz, an insurance group and financial advisory group based in South Florida, has been embroiled in legal troubles over alleged securities law violations. The company, along with its co-founders Marshal Seeman and the late Eric Holtz, stands accused of conducting a Ponzi-like scheme. The investment fraud allegedly involved unregistered securities in the form of promissory notes. These notes—which were largely sold to senior citizens investors—were marketed as safe investments that carried high rates of return.

Indeed, the investors—reportedly more than 1,000 in total—were entitled with promises of safe, secure annual returns nearly 20 percent. However, regulators believe Seeman Holtz operated a Ponzi-like scheme. In 2021, the Florida Office of Financial Regulation filed a civil complaint seeking remedies including injunctions, civil penalties, and restitution for investors.

 Allegations: Wells Fargo “Aided and Abetted” Ponzi Scheme

 Wells Fargo is facing allegations of aiding and abetting the Seeman Holtz Ponzi scheme. Among other things, the lawsuit claims the bank monitored transactions for the scheme without taking action to stop it, despite apparent knowledge of the fraudulent activities. As noted, the scheme reportedly affected more than 1,000 investors. A civil lawsuit was filed against the financial services company in a circuit court in Palm Beach County.

 A Third Party May Be Liable for Role in a Ponzi Scheme 

A third party can be held legally liable for a Ponzi scheme if they knowingly assist in its operation or significantly enable the fraud to continue. The liability arises if a third party—banks, brokerage firms, etc—fails to exercise due diligence or ignores clear signs of fraudulent activity. Courts may find such entities accountable for aiding and abetting the scheme by providing essential services or support. Third party liability is key as it provides a potential path to justice for investors.

Elderly Investors are Vulnerable 

Elderly investors are often targeted by financial scams due to their potential for accumulated wealth and, in some circumstances, their reduced capacity. It is imperative that vulnerable senior citizen investors in Florida have the proper support system in place to protect their financial interests.

 Get Help From a Ponzi Scheme Lawyer in South Florida Today

At ​Carlson & Associates, P.A., our Miami Ponzi scheme attorney is standing by, ready to protect your rights as an investor. If you or your loved one suffered serious financial losses in a Ponzi scheme, we are here to help you explore every potential path to full and fair financial compensation. Contact us at our Miami law office today for a confidential consultation with a Florida Ponzi scheme lawyer.

Source:

sun-sentinel.com/2024/05/15/lawsuit-accuses-wells-fargo-of-aiding-and-abetting-alleged-ponzi-scheme/