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How ‘Sweep’ It Was, Suit Against Wachovia Charges
Wachovia Corp. and several of its subsidiaries have been sued for allegedly taking assets from customer’s trust accounts and improperly placing them in the bank’s own mutual funds, and then slapping the client with “sweep fees.”
Wachovia Corp. and several of its subsidiaries have been sued for allegedly taking assets from customers trust accounts and improperly placing them in the banks own mutual funds, and then slapping the client with sweep fees. Filed in U.S. District Court in Philadelphia, the suit by Ralph Brooks involves money that a Philadelphia newspaper and radio station raised for him when he was 6 years old after he was shot and badly injured. The more than $81,000 raised was placed in an account with Wachovia predecessor CoreStates Financial, and, according to the suit, Wachovia on its own purchased shares of its Evergreen Funds and charged his account with the fees instead of placing the money in a less-expensive, better-performing fund. Brooks, who is now 28, is seeking class action status and punitive damages. A spokeswoman for Evergreen says the case is without merit.