Arizona tribe claims bank mismanaged investments
Posted at: 05/23/2013 3:30 PM
| Updated at: 05/23/2013 4:18 PM
By: The Associated Press
FLAGSTAFF, Ariz. (AP) - The Hopi Tribe of northern Arizona claims its investments were mishandled by a national banking institute, resulting in the loss of millions of dollars.
The tribe filed its claims against Wachovia earlier this month with the Financial Industry Regulatory Authority. It is seeking more than $190 million in damages and penalties through arbitration.
The claims allege that Wachovia and its financial advisers concealed losses from the tribe, misrepresented the risk in investments and overcharged fees.
A spokesman for Wells Fargo & Co, which acquired Wachovia in 2008, said Thursday that the bank would present its side during an arbitration hearing.
Wells Fargo settled a case in 2011 that claimed Wachovia Capital Markets LLC misled investors to sell mortgage bonds in 2006 and 2007 to the Zuni Tribe of New Mexico.
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