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Surprise suing bank over loss of $2 million
Comments 0 | Recommend 0PHOENIX (AP) — Surprise is suing Wells Fargo bank claiming a risky investment cost the city $2 million.
Surprise alleges in a lawsuit that Wells Fargo invested city money in a risky, offshore company backed by subprime mortgages and home-equity loans.
The city accuses the San Francisco-based financial institution of professional negligence, breach of contract and statutory consumer fraud.
As of Aug. 14, 2008, Surprise moved all its funds, about $99.8 million, out of a Wells Fargo investment-management firm and invested it with the state treasurer's investment pool.
Bank spokeswoman Marjorie Rice said the defendants have read the city's complaint and are aware of the allegations and plan to vigorously defend the case.
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