Matthew Beasley Settlement Funding Contract Ponzi Scheme Lawsuit

Wells Fargo Bank allegedly should have recognized red flags characteristic of a Ponzi scheme

Our class action lawsuit alleges that Wells Fargo knew sufficient facts to have a duty to investigate the Ponzi scheme and that it violated the law by taking no action. To illustrate, Matthew Beasley opened the Wells Fargo IOLTA in 2017, with a business that brought in $350,000 in gross annual sales. After being told to anticipate $350,000 in gross annual revenues, Wells Fargo witnessed nearly $500 million flow through the account, per our lawsuit, and at that point, it had enough information to know of Beasley’s wrongful use of the IOLTA.

The complaint also alleges that Wells Fargo aided and abetted this Ponzi scheme by ignoring obvious and continuous signs of fraud and money laundering. As described in the lawsuit, banks like Wells Fargo are required under federal law to collect and maintain customer information and understand their banking behavior in order to, among other things, detect and prevent fraud.

Matthew Beasley, Jeffrey Judd, J & J Consulting allegedly involved in $300 million Ponzi scheme defrauding investors

According to our lawsuit, in 2017 Jeffrey Judd began looking for investors to buy into personal injury settlements from plaintiffs who wanted immediate payouts at a portion of their value. The lawsuit states that Judd told investors that personal injury and family law attorney Matthew Beasley would assist by finding settlements to purchase, and by writing the contracts that were offered to investors. Jeffrey Judd owns several businesses including J & J Consulting Services Inc. and J & J Purchasing Inc., that were also used in connection with this alleged scheme.

Per the FBI, investors were often informally approached by promoters or “handlers” at church, the gym, and during other recreational activities. The members of the scheme presented litigation funding as attractive and rare investment opportunities. Investors were often asked to commit to participating between Thursday and Sunday, and then wire money to the organization the following Monday or Tuesday. The lawsuit further claims that Matthew Beasley and Jeffrey Judd asked investors to send investments into a lawyer’s trust account (IOLTA) with Wells Fargo. Instead of using these funds solely for the purpose of investing in personal injury settlements, our lawsuit alleges Beasley and Judd misappropriated this money to fund their lavish lifestyles, effectively plundering investors’ retirement savings, college savings, and other funds in an elaborate Ponzi scheme.

FBI investigating attorney Matthew Beasley lawsuit settlement contracts sold 2017-2022 for fraud

According to KSNV News 3 Las Vegas, the DOJ is now investigating Las Vegas attorney Matthew Beasley, from Beasley Law Group PC, for his alleged role in a Ponzi scheme that operated in Nevada, Utah, California, and other states.

As reported by the Wall Street Journal, after the FBI raided his home, Beasley purportedly confessed that his venture with Jeffrey Judd was a Ponzi scheme.

According to the FBI, you may have been targeted by this Ponzi scheme if these factors apply to you:

• You invested in a “settlement contract,” “lawsuit settlement contract” “settlement funding contract,” or a similar contract related to third party slip-and-fall lawsuits between 2017-2022;
• You asked to set up an LLC to collect your return; 
• You were instructed to wire your investment to an IOLTA account (lawyers’ trust account); 
• You asked to invest $80-100k; 
• You promised a return of 10-13% in 90 days; 
• You received a contract with a reference to a slip-and-fall incident, nondisclosure agreement, purchase agreement, and investor agreement; 
• Your contract changed into a “membership” after 90 days. 

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