Wells Fargo Reaches $3.75 Million Deal Ending Ponzi-Aid Dispute

Investors who say Wells Fargo Bank NA aided and abetted a real estate Ponzi scheme in which they lost millions asked a federal judge in California for permission to move forward with a $3.75 million settlement.

The cash deal represents “3.75% of estimated losses” and a “much higher percentage” of recoverable damages depending on how the alleged EquityBuild scheme’s assets are allocated following a receivership, investors who thought their funds were supporting Chicago real estate opportunities told the US District Court for the Northern District of California.

The alleged Ponzi scheme—involving Jerome Cohen, Shaun Cohen, EquityBuild Inc., EquityBuild Finance LLC, …