THE FIRM YOU GO TO WHEN THE
STAKES ARE HIGH

SEC INVESTIGATING WELLS FARGO FRAUDULENT PRACTICES

SEC Investigating Wells Fargo Fraudulent Practices

Customers of Wells Fargo have plenty of reasons to be upset as the international banking company is making headlines for all the wrong reasons. In September, Wells Fargo paid $185 million to the Government for fraudulently opening more than 1.5 million accounts without customers’ knowledge. Now the SEC is getting involved, and Wells Fargo may be forced to pay hundreds of millions more.

The company is also facing Congressional scrutiny over the fraudulent opening of accounts without customers’ knowledge. In fact, the former CEO of Wells Fargo, John Stumpf, was recently called to testify in front of Congress to defend his and his company’s conduct. This conduct included opening 1,534,280 unauthorized deposit accounts, submitting 565,443 unauthorized credit card applications, opening unauthorized lines of credits, and various other fraudulent actions all without the customers knowledge.

Impossibly High Sales Goals Standards Leads to Fraud at Wells Fargo

So why did Wells Fargo open all of these accounts? Profit. By pressuring Wells Fargo employees into meeting impossibly high sales quotas, employees resorted to fraud to meet said goals. Unfortunately, it worked all too well. These impossibly high sales quotas generated millions of dollars for the company, and in some cases employees were given bonuses for reaching their goals through fraud.

So far, more than 5,000 employees have been terminated, and while Wells Fargo takes the position that this was not a managerial initiative, some employees disagree. One former employee told Forbes “‘[w]hat I want people to understand, it was more survival . . . To say we were under pressure is an understatement.’”

Where Was The Whistleblower?

The $185 million payment to the Consumer Financial Protection Bureau, the Office of the Comptroller of the Currency, and the Los Angeles City Attorney was not the result of any whistleblower program, nor does any office have a whistleblower program. However, a whistleblower could have been rewarded millions for reporting this fraud to the SEC.

By engaging in illegal sales practices, Wells Fargo may have committed Securities Fraud by misleading investors. Wells Fargo is a publicly traded company, meaning the SEC has jurisdiction to prosecute and reward an anonymous whistleblower for reporting such fraud. A whistleblower who reports corporate fraud to the SEC can stay anonymous as long as they report the fraud through an attorney. This would have allowed any of the thousands of Wells Fargo employees to report this fraud to the SEC and receive up to 30% of what the SEC recovers from Wells Fargo. Further, the SEC Whistleblower Program protects whistleblowers from retaliation by their employers. While the SEC is investigating the fraud, it is not believed to be a result of a whistleblower disclosure.

If you have knowledge that a public corporation is engaging in Securities Fraud or other fraudulent activities, then give us a call today for a free consultation and case review with an experienced whistleblower attorney.

Sources:

http://money.cnn.com/2016/09/20/investing/wells-fargo-elizabeth-warren-resign-criminal-investigation/index.html?iid=EL

http://money.cnn.com/2016/09/29/investing/wells-fargo-john-stumpf-hearing-congress/

http://www.bloomberg.com/news/articles/2016-09-08/wells-fargo-fined-185-million-over-unwanted-customer-accounts

http://money.cnn.com/2016/09/29/investing/wells-fargo-john-stumpf-hearing-congress/

http://www.forbes.com/sites/maggiemcgrath/2016/09/08/wells-fargo-fined-185-million-for-opening-accounts-without-customers-knowledge/#537e067d5d7a

http://www.cnbc.com/2016/11/02/sec-is-reportedly-probing-wells-fargo-about-sales-practice-disclosures.html

A TEAM COMMITTED TO DOING WHAT IS RIGHT

Find out whether you have a case by speaking to one of our experienced lawyers via our 24/7 toll-free hotline or by submitting an email inquiry. Our attorneys will be quick to respond to you and happy to answer all of your questions.

KNOW THE DIFFERENCE

Committed to Doing What’s Right

Over $3 Billion Won

We have represented numerous individuals and groups of workers, winning for them multi-million-dollar settlements and verdicts.

There's No Case Too Big

Our team has achieved groundbreaking victories in highly complex cases and has gone up against some of the toughest defendants in the country.

Trial Attorneys

Our attorneys excel in the courtroom and are not afraid to bring a case in front of a jury if a fair settlement for the client has not been reached.

A Thought Leader in the Industry

Our firm’s knowledge and experience are in high demand, and many news outlets have asked us to share our legal expertise.

Access to World Class Resources

Our experienced attorneys use cutting-edge technology and highly regarded experts to help us achieve the best possible result for our clients.

Changing the World for Good

We not only want to achieve the best possible results for our clients, but we also strive to prevent future harm by changing public health policies.

THOUSANDS OF CLIENTS HELPED

Hear What They Have to Say

Professional, responsive and very good at their jobs.

“From the first visit to my home, to my last visit to the office to collect my settlement, I was very happy with the services provided by this firm. They are professional, very responsive and very good …”

– Lisa Ross

They have truly gone above and beyond.

“I have been beyond pleased how Levy Konigsberg is handling my matter. They answer my questions in a timely matter and when warranted, ease my worries and concerns. They have truly gone above and …”

– Anne Fahey

I put my Faith and Trust into Corey Stern!

“Selecting a Law firm to represent me was one of the biggest decisions I’ve had to make in my life. I put my Faith and Trust into Corey Stern, and he exceeded all my expectations.”

– Dennis McGowan

With this team on my side we came out on top.

“Levy Konigsberg and team are a group of men and women that give their all, down to the receptionist. I had a case that was almost unbeatable but with this team on my side we came out on top. They keep …”

– Angie Garrido

Very happy with our settlement.

“My husband and I were VERY happy with our experience with this firm. They were always caring and really helped us go through this in a very hard time in our lives .We continue to be in touch with the …”

– Lori Rosa

Wow is all I can say.

“It has been a few years now but I needed to post this. My dad suffered so much from Mesothelioma. My brother looked into the law and our rights. Unfortunately he died also before anything was done. It …”

– Carol N.

Their dedication to receive the highest results for their clients was amazing.

“Working with Levy Koningsberg LLP was a very positive experience. Their professionalism and curiosity was outstanding. I was a pleasure working with this firm. Their dedication to receive the highest …”

– Emily DeRogatis.

Such a great team!

“The whole team at Levy, Konigsberg LLP have been extremely professional and kind during our most difficult time. They keep you informed during the process, check in often asking if there are any …”

– Kevin Kober

We definitely got the right law firm!

“Levy Konigsberg represented my daughter Linda, who was diagnosed with mesothelioma at 16 years old. She endured many surgeries and chemotherapy including HIPEC. She traveled the country seeking …”

– Mark Wells

Levy Konigsberg continued to help my family fight for the justice my father deserves.

“Levy Konigsberg was there for my father as soon as he was diagnosed with mesothelioma they helped him get medical treatment in another state that specializes in his condition and even provided housing …”

– Stephanie Vitale

LEVY KONIGSBERG IN THE NATIONAL MEDIA

OUR BLOG

Free Case Review