Wells Fargo to pay $45 mln in Okun fraud case

NEW YORK Aug 18 (Reuters) - Wells Fargo & Co (WFC.N) has agreed to pay $45 million to settle lawsuits related to work performed for a tax deferral firm whose clients were swindled out of $126 million by now-imprisoned Edward Okun.

The settlement was disclosed in court papers filed last week by the trustee liquidating Okun's firm, 1031 Tax Group LLC. It relates to work performed by Wachovia Corp, which Wells Fargo acquired at the end of 2008.

Wells Fargo's $45 million payment would be "in full settlement of all claims" asserted by the trustee and other plaintiffs, the papers show. The settlement requires court approval.

A spokeswoman for San Francisco-based Wells Fargo did not immediately return a call seeking comment. The bank is the nation's fourth-largest by assets.

In March, a federal jury in Richmond, Virginia convicted Okun of wire fraud, money laundering, smuggling, perjury and conspiracy, following a three-week trial.

Earlier this month, a federal judge sentenced the Miami businessman to 100 years in prison and to forfeit $40 million.

According to the filing, some of Okun's former lawyers have also agreed to make payments to the tax firm's estate to resolve possible claims.

Kluger, Peretz, Kaplan & Berlin PL will pay roughly $10.7 million, while Michael Rosen will pay $925,000, the filing shows.

Tax deferral companies help customers benefit from a U.S. law that allows the deferral of some taxes when one property is swapped for another. Customers pay fees to the companies.

The case is In re 1031 Tax Group LLC, U.S. Bankruptcy Court, Southern District of New York (Manhattan), No. 07-11448. (Reporting by Chelsea Emery and Jonathan Stempel; Editing by Gary Hill)