Wells Fargo agrees to pay $ 3 billion over fake accounts that employees opened to achieve sales goals
Wells Fargo agrees to pay $ 3 billion in scandals over fake accounts that employees opened to achieve sales goals
Wells Fargo agreed on Friday to pay $ 3 billion to settle criminal and civil investigation in a long-term practice where company employees opened millions of unauthorized bank accounts to achieve unrealistic sales goals.
Since the fake account scandal came to light in 2016, Wells has paid billions of fines to state and federal regulators, reshuffles the board of directors and has seen two CEOs and other top executives leave the company.
The $ 3 billion payment includes a $ 500 million civil payment to the Securities and Exchange Commission, which will distribute these funds among investors affected by Wells’ behavior.
Since the fake account scandal came to light in 2016, Wells Fargo has paid billions of fines
Before the scandal broke out, Wells Fargo was considered a real reputation with the big banks. The bank called its branches “stores” and once had the policy of getting every Wells Fargo customer to have eight financial products with the company
Wells’ sales policy, under pressure from top management, was aggressive and unrealistic. Bank employees were criticized for not making inflated sales quotas, which ultimately resulted in many employees gaming at Wells Fargo’s sales system to meet these artificial sales goals. For example, a number of Wells Fargo customers, particularly the elderly, were registered for online banking when they did not have internet access.
“Simply put, Wells Fargo swapped his hard-earned reputation for short-term profits and harmed countless clients along the way,” said US lawyer Nick Hanna for the Central District of California in a prepared statement.