A Nevada federal judge has pared down an immigration attorney’s sweeping lawsuit accusing a Wells Fargo unit of disastrous investment advice, but left two pivotal claims standing — a decision that keeps the heart of the case beating and intensifies scrutiny on the bank’s role in a tangled EB-5 financing saga.
Chief U.S. District Judge Andrew P. Gordon ruled Dec. 3 that fraudulent misrepresentation and negligent misrepresentation claims filed by attorney and real estate developer Lixin Azarmehr can proceed. The judge found she plausibly alleged that she relied on Wells Fargo’s promise not to give advice that would heighten her legal exposure — a promise she says ultimately led straight to an SEC investigation and enforcement action.
The ruling slices away five other claims, dramatically narrowing the battlefield but leaving Wells Fargo to face accusations at the core of the dispute.
EB-5 Investment Web at the Center of the Case
Azarmehr — along with her associated entities Nevada Skilled Nursing Lender LLC and Nevada Skilled Nursing Development LLC — contends that misguidance by Wells Fargo Clearing Services LLC, known as Wells Fargo Advisors, and a former employee triggered the SEC’s action against her.
