United States Second Circuit
State of New York ex rel. Jacobson v. Wells Fargo National Bank, N.A., 15-1152
In a quit tam complaint asserting two claims under the New York False Claims Act (NYFCA), N.Y. State Fin. Law section 187 et seq., against bank defendants for fraudulent avoidance of New York tax obligations, the District Court's denial of plaintiff's motion to remand the action to state court for lack of subject matter jurisdiction and grant of defendants' motion to dismiss the complaint for failure to state a claim are affirmed where: 1) the complaint did not plausibly allege that the Wells Fargo trusts were not qualified to be treated as Real Estate Mortgage Investment Conduits (REMICs); and 2) accordingly, it failed to state a claim on which relief could be granted under the NYFCA for any false statement or record affecting the trusts' entitlement to exemption from income tax under the New York tax laws.
Appellate Information
- Published 2016/06/02
Judges
- KEARSE
Court
- United States Second Circuit