Who:
Defendant: Wachovia Securities, LLC, Wells Fargo Advisors, LLC, Robert William Eddy, George M. Gordon III, Walter R. Anderson and Walter Randolph Anderson, Jr.
What:
Although the program was allegedly marketed to "deliver three powerful benefits: liquidity,. . . hedging, . . . and opportunity so you can keep your equity assets working for you," the plaintiff alleges that "when Derivium had received the securities as collateral, they sold the collateral immediately through the brokerage accounts." According to the complaint, the defendant Wachovia Securities, LLC (n/k/a Wells Fargo Advisors LLC) "intentionally and substantially aided in . . . Derivium's fraudulent 90% Loan scheme" by "len[ding] its name . . . to provide credibility" and by "help[ing] carry out Derivium's fraudulent scheme." The complaint further alleges that the defendants "helped the Derivium principals and their alter-ego entities design, promote and implement the Derivium Program." Additionally, the complaint alleges that the defendants "knew at all times that the Derivium Program was a fraud and that the . . funds were being diverted to Derivium owned companies and [defendants] had a duty to disclose that fact to borrowers, including plaintiff...."
Based on these allegations, the complaint alleges four causes of action against the defendants: (i) Fraud; (ii) breach of fiduciary duty; (iii) aiding and abetting breach of fiduciary duty; and (iv) breach of NASD and NYSE rules. According to the complaint, the plaintiff seeks compensatory damages in the amount of $5,000,000, attorneys' fees and costs, prejudgment interest and treble damages.
Where:
When:
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