SHERMAN, Texas, Aug. 15, 2018 /PRNewswire/ -- Micah Dortch,
managing partner of the Dallas
office of the Potts Law Firm, has been appointed as a Special
Receiver in litigation originally brought by the Securities and
Exchange Commission against a group of Texas businessmen. That lawsuit seeks to
recover funds from what was characterized as a fraudulent
investment scheme directed by Thurman P.
Bryant III of Frisco and
Arthur E. Wammel of Pearland, along with affiliated companies and
individuals.
Evidence in the case revealed that, in less than three years,
the defendants were able to withdraw or transfer more than
$20 million in cash from Wells Fargo
Bank (NYSE: WFC) accounts in violation of industry standards
and the bank's own policies. Despite numerous five-figure and
six-figure cash withdrawals, Wells Fargo management never verified,
questioned or restricted any of the activities.
According to the SEC complaint, originally filed in 2017, the
defendants raised more than $22
million from more than 100 investors to purportedly fund
short-term mortgage loans for later sale to long-term lenders. In
fact, the SEC says that no such program existed, and that Mr.
Bryant and Mr. Wammel were operating a Ponzi scheme, with limited
returns paid to investors from monies raised from other
investors.
Mr. Dortch has been appointed by the court to further
investigate the role of Wells Fargo in the matter and to seek
financial compensation on behalf of the defrauded investors, filing
a complaint alleging that Wells Fargo failed to follow its
fiduciary role.
"As stated in the complaint, Wells Fargo either knew about the
scheme or willfully ignored the questionable actions being made in
violation of its own internal rules," said Mr. Dortch. "I'm honored
to take on this role and gain a just resolution for these innocent
victims."
The case is Ecklund v. Wells Fargo Bank, N.A., No.
4:18-cv-00452-ALM, filed in U.S. District Court for the Eastern
District of Texas in Sherman.
Media Contact:
Barry
Pound
214-559-4630
barry@androvett.com
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SOURCE Potts Law Firm, LLP