Out of Pod Experience

Minnesota Law Firm Milavetz Gallop Files Suit Blaming Wells Fargo for Loss in Nigerian Scam
Milavetz, Gallop & Milavetz of Edina, Minn., claims in a lawsuit that Wells Fargo Bank is responsible for its loss of nearly $400,000 in a scam targeting law firms.

Milavetz Gallop fell victim to the scam when someone claiming to be a 40-year-old Korean woman hurt in Minnesota told the firm she needed help securing a 400,000 legal settlement, report the Minneapolis Star Tribune and Courthouse News Service. The firm received a settlement check for the amount, received assurances it had cleared, and forwarded $396,500 to a Hong Kong bank for the client.

The suit (PDF) claims Wells Fargo employees knew or should have known the check was fraudulent. The complaint alleges the bank had a conflict of interest because of a federal program that could have paid up to $150,000 to employees who provide information about money laundering.

According to the suit, the scam is responsible for $29 million in losses from more than 70 lawyers and law firms. Scammers also tried without success to take another $100 million from about 300 lawyers and firms. Typically, the scammers contact lawyers through websites such as lawyers.com, the suit says.

Wells Fargo has issued a statement saying the suit has no merit and it expects to prevail.