Wespac Financial Corp. sued Morgan, Olmstead.

The Newport Beach company alleged that the Los Angeles investment firm of Morgan, Olmstead, Kennedy & Gardner and others violated anti-fraud laws and engaged in "a pattern of racketeering activity" that led to nearly $6 million in losses by two real estate investment trusts sponsored by Wespac. The suit, filed in U.S. District Court in Los Angeles, arose out of the same circumstances alleged in a suit filed last July in Orange County. Morgan, Olmstead lawyers called the suits groundless.

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