Wymer Case Funds: The Iowa Trust, defrauded...
Wymer Case Funds: The Iowa Trust, defrauded of $75 million by Newport Beach investment adviser Steven D. Wymer, said Wednesday that it has recovered an additional $4 million, this time from an Iowa bank.
Last month the trust for the first time recovered money lost in the spectacular fraud when it received $7 million in disputed funds from the Coachella Valley Joint Powers Insurance Authority, a self-insurance pool for cities in the Southern California desert.
The trust has lawsuits pending in three states--including California--seeking return of millions lost or stolen by Wymer.
Wednesday’s $4-million settlement with Bankers Trust Co. of Des Moines precludes a lawsuit in that case, the trust said.
The trust asserted that the bank was negligent in transferring to Wymer securities that actually belonged to Iowa Trust, a collection of Iowa cities that had pooled their money and hired Wymer to invest it for them.
The bank denies that it was negligent.
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