Class-action suit against crypto Ponzi scheme pulls in Wells Fargo bank
A former Wells Fargo exec and several accomplices scammed to rip off investors
A former financial advisor working for Wells Fargo Bank has been accused of being the mastermind of a Ponzi scheme that ended up with 100 victims losing over $35 million. Now, Q3 Investment Recovery Vehicle (Q3IRV), which is now representing the victims, has filed a class-action lawsuit against Wells Fargo Advisors, the advisor, James Seijas, and others. The lawsuit claims that the financial entity should be monitoring their employee’s external activities as part of its own policy of mandating employees to regularly report activities relating to outside interests. The plaintiffs claim that this Wells Fargo subsidiary failed to inquire about the financial advisor’s activity while he perpetrated the scam.
The lawsuit is seeking damages and interest payments for vicarious liability attributed to the actions and omission of Sejias. “Wells Fargo Advisors’s policies and procedure required employees to regularly report to Wells Fargo Advisors concerning work they did outside the scope of their employment,” said one of the bank’s policies. According to the suit, Sejias was presenting himself as an investor on behalf of Wells Fargo while he was employed with the bank and “the acts and omissions described herein were committed in his capacity as an agent for Wells Fargo Advisors,” said the suit. The charges the lawsuit seeks against Wells Fargo Advisors are unjust enrichment, negligence and fraud.
Also involved in this Ponzi scheme were co-founders Quan Tran, a certified general surgeon, and Michael Ackerman, a former UBS securities employee who formed Q3 Trading Club in 2017. These three individuals used Facebook and other social media to promote to lure physicians into putting money to an investors fund to trade crypto assets with a proprietary algorithm.