Online rumors say that the bank, which recently merged with Wachovia, is cutting up to 20% of its legal department. The bank would not confirm the numbers, but characterized the percentage affected as “small.”

Founded in New York in 1852, San Francisco, California-based Wells Fargo & Co. is the 4th largest bank in the US by assets, and the second largest bank by market cap.

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Separately, the Securities and Exchange Commission filed suit to recover the $113 million. Southern District of New York Judge Miriam Goldman Cedarbaum will appoint Mark Pomerantz of Paul Weiss Rifkind Wharton & Garrison as receiver to protect Dreier’s assets.

In another civil suit filed Monday, Wachovia Bank alleged the Dreier firm had defaulted on a $9 million revolving credit note made in connection with a $14.5 million credit agreement and a term note in the amount of $5.5 million. Wachovia is asking the court to enjoin the firm or any of its current, former or departing attorneys from disposing of any collateral belonging to the bank.

The criminal complaint charges Dreier with one count each of securities and wire fraud. He faces a maximum sentence of 20 years in prison if convicted on either count. He also could be forced to pay a fine equal to twice the value of any illegal gains.

Via Law.com.

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