The lawsuit states that the scheme left many investors without their life savings and reliant solely on Social Security benefits for retirement. The scheme was uncovered in 2021 by the Florida Office of Financial Regulation, which brought suit in Florida state court. Daniel Stermer, appointed receiver for National Senior Insurance and other entities, determined through a forensic review that the scheme and Wells Fargo’s actions substantially damaged the entities.
“As a direct and proximate consequence of Wells Fargo’s knowing and substantial assistance of the scheme, the [Para Longevity companies] and other receivership entities had their assets stolen, the STOLIs they purchased, pledged and ultimately foreclosed on by third parties, and their bank accounts pilfered by the scheme operators,” the complaint said.
Stermer’s review led to a supplemental proceeding against Wells Fargo for aiding and abetting the scheme. Millstein alleges that without Wells Fargo’s involvement, the scheme would have stalled, allowing the entities to engage in legitimate investments.
