July 24, 2024

# Wells Fargo implicated in a $300M Ponzi scheme by class-action lawsuit

![Exterior of a Wells Fargo branch](https://investmentshoax.com/wp-content/uploads/2024/06/shutterstock_2276807733-1024×683.jpg)

_(Photo Credit: Larry Zhou on Shutterstock)_

## Quick Snapshot: Class-action lawsuit against Wells Fargo Bank NA

* Plaintiff: Fanny B. Millstein
* Accusation: Alleges Wells Fargo was involved in a Ponzi scheme, leading older investors to lose large parts of their savings.
* Place of filing: Florida federal court

Wells Fargo is facing a class-action lawsuit for purportedly aiding a Ponzi scheme responsible for over $300 million in investor losses. The lawsuit alleges that Wells Fargo was the primary bank for the companies perpetrating this scheme, namely National Senior Insurance Inc., the Para Longevity Companies, and the Centurion Companies.

The fraud consisted of selling promissory notes offered by these companies, secured by life insurance policies issued to third parties. Investors were promised returns from death benefits and were to receive their initial investment back. Instead, new investments were used to pay for previous ones while a significant amount was stolen through fictional fees and expenses, according to the lawsuit.

## Wells Fargo’s alleged awareness and involvement over the decade

Millstein claims that Wells Fargo was aware of the Ponzi scheme from 2011 through 2021 but did nothing to stop it. According to the accusation, the bank knowingly contributed to and benefited from the scheme. The fraudulent activity was reportedly detected by the Florida Office of Financial Regulations in 2021, with evidence suggesting Wells Fargo’s knowledge and assistance.

The bank is considered a primary accomplice in the scheme, and in effect, enabled it to escalate. Many victims were elderly, losing substantial parts of their savings. Wells Fargo is thus being held accountable for all outstanding funds owed to the victims.

In addition to allegations of aiding and abetting a scam, Wells Fargo faces additional accusations of discrimination against racial minorities in its loan application process.

## Do you have opinions on Wells Fargo’s Ponzi scheme accusations?

Join the discussion in the comments.

Millstein’s case is being led by Seth Miles, David M. Buckner, Brett E. von Borke, Scott L. Silver, Ryan A. Schwamm, Peter M. Spett, James D. Sallah, and Joshua A. Katz. The case reference is Fanny B. Millstein v. Wells Fargo Bank NA, Case No. 1:24-cv-22142, in the U.S. District Court for the Southern District of Florida, Miami Division.

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### Relevant Questions

1. What kind of Ponzi scheme is Wells Fargo accused of involving?
2. How did Wells Fargo allegedly contribute to the Ponzi scheme?
3. What are the consequences for Wells Fargo if found guilty?