- Details
- By Tribal Business News Staff
- Policy and Law
A Broward County jury has ordered Wells Fargo to pay $826 million to the Seminole Tribe of Florida's children for mismanaging a trust fund established to manage gaming revenues.
The Tuesday verdict followed a six-week trial where attorneys argued Wells Fargo and its predecessor Wachovia Bank deliberately invested trust assets in low-yielding accounts and charged approximately $7.6 million in unauthorized fees from 2005 to 2015.
"Wells Fargo lost sight of its responsibility to protect and preserve the interests of the Seminole minor children," said Steven Osber, a plaintiffs' attorney who presented financial arguments to the jury, according to ICT.
The Minors Per Capita Payment Trust was established in 2005 as the tribe prepared for its 2006 purchase of Hard Rock International. By 2016, the trust had grown to approximately $1.4 billion, with current assets around $3 billion. Distributions from the trust provide tribal members with an estimated $2-3 million each when they reach age 24.
William Scherer, lead attorney for the plaintiffs, said the jury considered how much more the trust would have earned with appropriate investment strategies.
"The Tribe hired the bank because the bank has the expertise," Scherer said, according to a report in the Orlando Sentinel.
Wells Fargo's defense attorneys blamed tribal leaders for insisting on conservative investment strategies, but plaintiffs countered that the trust agreement made the bank the final authority on investment decisions.
The case originated from a 2016 lawsuit filed after the tribe discovered hidden fees during a 2015 trust investigation. According to court documents, Wells Fargo admitted to some fraudulent charges but offered only a partial refund.
The jury delivered its verdict after approximately six hours of deliberation. Scherer called the decision "a wake-up call for all financial institutions that think they are above the law and can take advantage of their clients," according to the ICT report.
Wells Fargo indicated it plans to appeal.
