A civil RICO (Racketeer Influenced Corrupt Organization) complaint has been filed against Wells Fargo, US Bank and two other entities in the latest wrinkle in a complex financial case involving investors.
Representing over 200 people who were investors in the alleged Cabot Ponzi scheme, Attorney Brian Mahany, a former Maine state revenue commissioner, saidthe often-elderly victims became joint guarantors on debt incurred by Cabot.
“In reading the complaint it’s hard to tell what was poor management or poor disclosure or poor communications with investors or fraud. The investments failed and investors lost money. According to the complaint and other lawsuits, a substantial sum was diverted outside the investment TIC structure to Cabot,” Cornelius added in the statement.
“The investors in Carlton Cabot’s fraud scheme were tenants-in-common or ‘TICs,” Mahany further explained in a blog post from June 2014.