Wells Fargo Settles MedCap Ponzi Scheme Claims For $105 Million

Wells Fargo Settles MedCap Ponzi Scheme Claims For $105 Million

SANTA ANA, Calif. - Wells Fargo Bank NA on April 30 agreed to pay $105 million to settle consolidated class action claims alleging that it breached its contract by giving noteholders' funds to Medical Capital Holdings Inc. (MedCap) as part of MedCap's alleged $1 billion Ponzi scheme (In Re: Medical Capital Securities Litigation $(Steven Masonek, et al. v. Wells Fargo Bank NA, No. 09-1048, Kenneth Bain, et al. v. Wells Fargo Bank, et al., No.10-0548, James L. Abbate, et al. v. Wells Fargo Bank, et al., No.10-6561$), No. 10-ml-2145, C.D. Calif.).

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