Class Action Lawsuit Against Wells Fargo
The Well Fargo Advisors Class Action Lawsuit occurred and is the result of a cover all legal suit. This is an illegal scheme by the Federal Government to make a profit through the interest rates of mortgage loans. The Lawyers, at the time of the filing of this lawsuit, were not even certified to practice Law. This lawsuit was filed by two men and one woman who were well known in the Mortgage industry for being frauds and for making unscrupulous business deals. They had defrauded the Government, and the Attorney General of the United States, of money they owed to them through their illegal activities.
This class action lawsuit was filed in the U.S. District Court, Southern District of Texas.
This was on the basis that the policies and programs of Well Fargo had been used to defraud the United States Government and the borrowers who had signed up for these programs. In other words, these borrowers were charged higher interest rates, given adjustable rate mortgages with adjustable interests, and were encouraged to purchase homes when they did not need them to do so. They lost money because of these illegal activities, and later found out that the Attorney General of the United States and Well Fargo was aware of these activities and did nothing to prevent them.
These attorneys filed their own version of this case, but they lost, and so did the Government.
But this class action lawsuit has been re-opened by the new President. He has promised to file lawsuits against fraud within 100 days. This means if fraud occurs during the first 100 days of his Administration, all victims of such fraud will be entitled to compensation. If he fails to do so, he will be personally liable for any legal costs incurred as a result.
There have been many changes made to the original complaint. The original complaint charged that Well Fargo employees, as representatives of the Government, had engaged in a conspiracy to defraud the government through their lending practices. This class action lawsuit did not charge that there was a conspiracy. It simply alleged that the conduct of the Well Fargo employees and their superiors, as well as other Government policies, were responsible for the actions of the Well Fargo employees and their colleagues. Well Fargo is facing a class-action lawsuit on the basis of their misrepresentation of mortgage products.
This new lawsuit, however, claims that the Attorney General and his staff conspired to prevent the release of this information and to create a situation in which the lawsuit would be delayed or denied.
It is clear from this complaint that Well Fargo fraudulently tried to avoid providing evidence of their activities, including their misrepresentations to homeowners. The well-written complaint offers additional proof that Attorney General Holder and his staff sought to intervene in the lawsuit, preventing it from moving forward. This is proof beyond a reasonable doubt that Well Fargo Fraud was very present and indeed pervasive during the Holder Administration.
It is also apparent that there was an attempt by the attorneys general to intimidate the homeowners into settling with Well Fargo. The complaint further provides evidence that the well-heeled attorneys were willing to pay the bank’s attorneys fees even without any settlement because they feared that the homeowners would file a class-action lawsuit against them if they refused to do so. Clearly, these attorneys have a conflict of interest which is why this lawsuit was not properly maintained by Well Fargo and other Attorney Generals during the time period in question.
Unfortunately, we live in a time when it is so easy for the powerful to abuse their power. This is precisely what is happening here. The original complaint was not only intended to hold the company accountable for their actions, but also to provide a blueprint for how other attorneys and government officials can engage in similar behavior in the future. There are so many questions that need to be answered, such as whether Well Fargo intentionally deceived the borrowers that it is impossible for the plaintiffs to know what happened in their case until after they have received their judgment. This is why every Attorney General needs to be mindful of this case and its potential ramifications.
While there is still time to obtain a class action lawsuit from the current lawsuit, it is highly unlikely that any such lawsuit will ever emerge from the Well Fargo case. The litigation process at present requires several months of extremely difficult work on the part of attorneys. The delay associated with a class-action lawsuit will undoubtedly force Wells Fargo into a position where they are forced to admit their misdeeds and pay the reparations to the homeowners. If you have been a victim of predatory lending activities at Wells Fargo, you should contact a Well Fargo Advisors attorney as soon as possible in order to receive the needed information to help you secure your monetary compensation.