PHILADELPHIA, April 12 /PRNewswire/ -- Langer & Grogan, P.C. announced today that it had filed a RICO class action alleging that Wachovia Bank, N.A. had conspired with a payment processor, Payment Processing Center ("PPC"), in a scheme that facilitated fraudulent telemarketing directed primarily at the elderly involving tens of millions of dollars. The suit was filed in Federal Court in Philadelphia. The complaint describes the use of "demand drafts" by deceptive telemarketers based on banking information they obtained over the phone from victims. The complaint alleges that PPC prepared the demand drafts and deposited them in a series of accounts opened at Wachovia. The complaint alleges that Wachovia, aware that demand drafts were commonly used by deceptive telemarketers, continued to open and to maintain the accounts, even though (1) the accounts had a return rate of approximately 60% of the total sums of the drafts deposited, and (2) even after a second Philadelphia bank had warned Wachovia that it was being flooded by unauthorized bank drafts originated by PPC and had solicited Wachovia's assistance "in trying to shut down the scam." The complaint states that, "Wachovia responded that 'overzealous' telemarketers were responsible for the problems with the PPC bank drafts, but nonetheless continued to accept such drafts from PPC." The complaint also alleges that other banks complained to Wachovia of PPC's activities. The complaint alleges that Wachovia had a special agreement with PPC which granted Wachovia expanded refund and charge back rights. The complaint alleges that Wachovia knew that the banking services it provided were an essential element in PPC's scheme.
SOURCE Langer & Grogan, P.C.