Wells Fargo Bank sued over trusts

Wells Fargo Bank sued over trusts

BY LISA BROWN • lbrown@post-dispatch.com > 314-340-8127 stltoday.com
Posted: Friday, March 23, 2012 10:06 am

Barbara Burton Morriss is suing Wells Fargo Bank over the handling of two family trusts that suffered millions of dollars in losses.

Barbara Burton Morriss is the mother of B. Douglas Morriss, the financier and former CEO of the Acartha Group in Clayton. The U.S. Securities and Exchange Commission accused B. Douglas Morriss of defrauding investors in civil charges lodged in January. The SEC alleged B. Douglas Morriss improperly transferred funds from the Acartha Group private equity management company and other investment funds into the Morriss Trust for personal use.

In the lawsuit filed in St. Louis County Circuit Court on March 19, Barbara Burton Morriss of St. Louis County alleges Wells Fargo Bank breached its fiduciary duty by failing to fully disclose financial transactions in the Burton Trust, which had $14 million in assets at one time, and in the Morriss Trust, which $32 million.

Both trusts have suffered a complete loss of value, according to the lawsuit. The lawsuit also alleges funds in both trusts were wrongfully pledged as collateral in risky business ventures. Barbara Burton Morriss was a beneficiary and co-trustee on both of the trusts with her son.

"Both trusts were improperly pledged as collateral for loans," said her attorney, Douglas Dowd. Dowd said Barbara Burton Morriss learned of the pledges from the trusts when the SEC filed its case against her son.

"Mrs. Morriss was not aware that this was going on and ... she sustained very significant financial damages as a result of this," Dowd said.

A Wells Fargo spokeswoman said Friday that the bank is reviewing the lawsuit and declined to comment.


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Editor's note:  This Shark has aways wondered about the relationship of the banks holding the millions of dollars of wards assets and the Probate Court of Cook County. A corrupt court system that is rotten to the core may assocate with similar institutions.  Lucius Verenus, Schoolmaster, ProbateSharks.com

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