Unlimited Adjusting Group, Inc. v. Wells Fargo Bank, N.A.

Opinion

MOSK, J.

INTRODUCTION

This case presents a novel issue under California Uniform Commercial Code section 3404, subdivisions (b)(i) and (d). Plaintiffs 2 lost more than $6 million in an investment fraud scheme. The perpetrator led plaintiffs to believe that brokerage accounts in their names would be opened with Carlin Equities Corporation, an existing broker-dealer, and induced plaintiffs to make checks payable to “Carlin Co.,” “Carlin Corp.,” and “Carlin Corporation.” The culprit opened his own bank account at defendant and respondent Wells Fargo Bank, N.A. (Wells Fargo), under the…