Elan Pavlov v. Wells Fargo & Company, Wells Fargo Clearing Services, LLC, and Wells Fargo Advisors Financial Network, LLC

CourtDistrict Court, D. Massachusetts
DecidedDecember 1, 2025
Docket1:25-cv-11313
StatusUnknown

This text of Elan Pavlov v. Wells Fargo & Company, Wells Fargo Clearing Services, LLC, and Wells Fargo Advisors Financial Network, LLC (Elan Pavlov v. Wells Fargo & Company, Wells Fargo Clearing Services, LLC, and Wells Fargo Advisors Financial Network, LLC) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elan Pavlov v. Wells Fargo & Company, Wells Fargo Clearing Services, LLC, and Wells Fargo Advisors Financial Network, LLC, (D. Mass. 2025).

Opinion

UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS __________________________________________ ) ) ELAN PAVLOV, ) ) ) Plaintiff ) ) v. ) ) Case No. 1:25-cv-11313-DJC WELLS FARGO & COMPANY, WELLS ) FARGO CLEARING SERVICES, LLC, AND ) WELLS FARGO ADVISORS FINANCIAL ) NETWORK, LLC, ) ) ) Defendants. ) ) ) __________________________________________)

MEMORANDUM AND ORDER

CASPER, C. J. December 1, 2025

I. Introduction

Plaintiff Elan Pavlov (“Pavlov”) has filed this lawsuit against Defendants Wells Fargo & Company, Wells Fargo Clearing Services, LLC and Wells Fargo Advisors Financial Network, LLC (collectively, “Defendants”) alleging that Defendants wrongfully concealed, withheld and failed to escheat funds from a custodial account established for Pavlov’s benefit under the Pennsylvania Uniform Transfers to Minors Act (the “PUTMA”), 20 Pa. C.S. §§ 5301–5321, in violation of Mass. Gen. L. c. 93A (“Chapter 93A”) (Count I) and the Electronic Fund Transfer Act (“EFTA”), 15 U.S.C. § 1693 et seq. (Count II), and alleges common law claims for breach of contract (Count III), breach of fiduciary duty (Count IV), conversion (Count V),1 and unjust enrichment (Count VI).2 D. 1. Defendants move to dismiss under Fed. R. Civ. P. 12(b)(6). D. 16. For the reasons stated below, the Court ALLOWS Defendants’ motion to dismiss. Id. II. Standard of Review When in a diversity action, “all parties cite to Massachusetts case law to support their

claims . . . [the] Court need inquire no further into choice of law.” Merchants Ins. Grp. v. Mr. Cesspool, LLC, No. 08-cv-12040-DPW, 2010 WL 2836859, at *3 n.6 (D. Mass. July 19, 2010) (quoting Peabody Essex Museum, Inc., v. U.S. Fire Ins. Co., 623 F. Supp. 2d 98, 106 (D. Mass. 2009)). As the parties here cite Massachusetts law in their briefs to the Court and do not dispute that Massachusetts law applies, this Court applies Massachusetts law. McAdams v. Massachusetts Mut. Life Ins. Co., 391 F.3d 287, 298 n. 5 (1st Cir. 2004). Under Rule 12(b)(6), a defendant may move to dismiss an action arguing that it fails to state a claim upon which relief can be granted. Fed. R. Civ. P. 12(b)(6). The Court must determine if the facts alleged “plausibly narrate a claim for relief.” Schatz v. Republican State Leadership Comm., 669 F.3d 50, 55 (1st Cir. 2012) (citation omitted). Reading the complaint “as a whole,”

the Court must conduct a two-step, context-specific inquiry. García-Catalán v. United States, 734 F.3d 100, 103 (1st Cir. 2013). First, the Court must perform a close reading of the claim to distinguish the factual allegations from the conclusory legal allegations contained therein. Id. Factual allegations must be accepted as true, while conclusory legal allegations are not entitled

1 In his opposition to Defendants’ motion to dismiss, Pavlov states that he “does not oppose dismissal of Count V.” D. 19 at 16. Accordingly, the Court dismisses Count V. 2 As Defendants note, the complaint also alleges Defendants violated Pavlov’s rights under the Gramm-Leach Bliley Act. D. 1 ¶¶ 60-64. As there is no private cause of action to enforce this Act, see Flinn v. Santander Bank, N.A., 359 F. Supp. 3d 128, 135 (D. Mass. 2019) (citing 15 U.S.C. § 6805), this claim is dismissed. credit. Id. Second, the Court must “take the complaint’s well-pled (i.e., non-conclusory, non- speculative) facts as true, drawing all reasonable inferences in the pleader’s favor, and see if they plausibly narrate a claim for relief.” Schatz, 669 F.3d at 55. If they do not, then dismissal is warranted. See Ocasio-Hernandez v. Fortuno-Burset, 640 F.3d 1, 12 (1st Cir. 2011). III. Factual Background

For the purposes of the motion to dismiss, D. 16, the Court confines itself to and accepts as true all well-pleaded facts in the complaint, save for considering “documents incorporated by reference into the complaint, matters of public record, and facts susceptible to judicial notice.” Haley v. City of Bos., 657 F.3d 39, 46 (1st Cir. 2011). In the 1970s, Pavlov’s grandparents established a custodial account at Wells Fargo (the “UTMA Account”) pursuant to PUTMA,3 designating Pavlov as the sole beneficiary of the account. D. 1 ¶ 25.4 While Pavlov was a minor, Pavlov’s grandmother served as custodian of the account. Id. ¶ 28. In May 1995, Pavlov turned twenty-one, the statutory age of termination of custodianship under PUTMA. Id. ¶¶ 28, 30, 32. As alleged, however, his grandmother never

3 The PUTMA “provide[s] an inexpensive, easy way for giving property to minors.” In re Lampe, 665 F.3d 506, 520 (3d Cir. 2011) (quotation omitted). Under the PUTMA, “[a] person may make a transfer by irrevocable gift to . . . a custodian for the benefit of a minor.” 20 Pa. Cons. Stat. Ann. § 5304. A custodian must manage the minor’s property, with “the standard of care that would be observed by a prudent person dealing with property of another.” Id. § 5312(a)-(b). Once the minor reaches the age of twenty-one, the custodian must “transfer in an appropriate manner the custodial property to the minor or the minor’s estate.” Id. § 5320.

4 Under the Massachusetts Uniform Transfers to Minors Act (the “MUTMA”), a transfer that is made pursuant to a substantially similar act of another state, “is governed by the law of the designated state and may be executed and is enforceable in the commonwealth if at the time of the transfer, the transferor, the minor, or the custodian is a resident of the designated state or the custodial property is located in the designated state.” Mass. Gen. L. c. 201A, § 2. Here, the PUTMA statute is substantially similar to the MUTMA, and Pavlov alleges that his grandparents established a UTMA account “pursuant to Pennsylvania’s UTMA statute,” D. 1 ¶ 25, and were residents of Pennsylvania at the time, D. 1-1 ¶ 2. Thus, the UTMA transfer at issue in this complaint is governed by the law of Pennsylvania and is enforceable in Massachusetts. transferred the funds in the UTMA Account to Pavlov and retained control over the funds therein. Id. ¶ 32. In 1998, at the age of twenty-four, Pavlov was discharged from military service in Israel. Id. ¶ 50. Following his discharge, Pavlov “made multiple inquires to the Pennsylvania Department of Unclaimed Property . . . hoping to locate the funds his grandparents had set aside for him.” Id. ¶ 47. As the account had not been escheated, id. ¶¶ 40-46, the state had no record of the account,

id. ¶ 47. Pavlov did not take any further action to locate the account at that time and was unable to access the funds therein. Id. ¶ 51. As a result, “he was left without any financial support,” id. ¶ 50, and was subsequently “rendered homeless” for a period of time following his military discharge, id. ¶ 51. As alleged, Defendants extracted fees from the UTMA Account “over the course of nearly three decades,” id.

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Elan Pavlov v. Wells Fargo & Company, Wells Fargo Clearing Services, LLC, and Wells Fargo Advisors Financial Network, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/elan-pavlov-v-wells-fargo-company-wells-fargo-clearing-services-llc-mad-2025.