A US banking giant has agreed to pay tens of millions of dollars to settle allegations that it knowingly facilitated a consumer scam.
In a lawsuit filed at the U.S. District Court for the Southern District of California, plaintiff Thomas W. McNamara accuses Wells Fargo of aiding and abetting fraud, conspiracy to commit fraud and abetting fraudulent transfers and/or voidable transfers.
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Court documents allege Wells Fargo clients lost money to alleged “risk-free” trial scams perpetrated by Triangle Media Corporation and Apex Capital Group.
Prosecutors say the scheme involved selling personal care products online, while offering free trials for just the cost of shipping, amounting to $4.95. But consumers were charged $90 after just two weeks, and cancelling or obtaining a refund was nearly impossible.
Prosecutors allege that Wells Fargo bankers were aware of the risk-free trial scheme and “knowingly assisted the operators” of the scam by opening 150 bank accounts for shell companies under the control of Triangle and Apex.
“Wells Fargo then allowed millions of dollars to be deposited in the accounts, knowing that these funds were unlawfully obtained in the risk-free trial schemes, and afterwards allowing the Enterprises’ operators to transfer their ill-gotten gains from the shell accounts to third-party bank accounts, including accounts located outside of the United States.”
The latest court filings about the case show that Wells Fargo has agreed to pay $33 million to settle the allegations. It also denies all claims and any wrongdoing or liability.
“Plaintiffs and Defendants have agreed to a settlement solely to eliminate the uncertainty, burden and expense of further protracted litigation.”
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