Norwest Mortgage's capital markets chief has become caught up in a lawsuit alleging "massive fraud" in connection with a $552 million issue of mortgage securities.

Jim Svinth, a senior vice president at Norwest, has been added to the list of defendants alleged to have defrauded investors when he was with the residential lending division of Prudential Insurance company. Mr. Svinth came to Norwest last year when it bought the Prudential operations.

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