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

https://www08.wellsfargomedia.com/assets/pdf/about/investor-relations/sec-filings/2016/third-quarter-10q.pdf

A TEAM COMMITTED TO DOING WHAT IS RIGHT

Find out whether you have a case by speaking to one of our experienced mesothelioma 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
  • They truly made a difference in our lives!

    “Levy Konigsberg went above and beyond in representing my father in his mesothelioma case against multiple parties. From providing a risk free introduction (even flying out at their expense to speak to my father in person) to fighting diligently for us.”

    - Jonathan McNulty
  • Outstanding law firm!

    “Jerry and Bob are not only experts in their field, but genuinely care about their clients. They explain the entire process in a step like manner and are keenly aware that the health and medical treatment of the defendant should not be compromised.”

    - R.M.
  • No need to look any further.

    “The attorneys were attentive to my fathers needs during all proceedings while at the same time aggressive with the defendants making sure my father got everything he deserved.”

    - Todd Allen
  • They were the clear choice!

    “Jerry Block was compassionate and assembled a team of attorneys that knew exactly what to do. Although no amount of money can replace my father, we are grateful to them for giving him the gift of knowing that his family would be taken care of.”

    - Bruce Totterdale
  • Forever grateful!

    “They were not only knowledgeable but also compassionate. It was comforting to know they were diligently working on his case so we could focus on his medical care. Levy Konigsberg became part of our journey and we are forever grateful.”

    - Diane Hoefer
  • The best and brightest!

    “They never failed to keep us informed of all important developments in the case, and they always gave a realistic idea of when the matter would be resolved. I always felt that my dad was excellently represented, and that his case was in the best hands.”

    - Paulette
  • Simply incredible!

    “Corey Stern was simply incredible! Not only did he keep me well informed as to what was transpiring with my case, but was direct and honest all the way through. His hard work and compassion resulted in an amazing settlement.”

    - IBS LMM
  • Knowledgeable guidance and representation.

    “Your firm explained all of the steps involved in filing my case, took the time to update me as it progressed, prepared me for my meeting with NYS officials… Without your knowledgeable guidance and representation, I may not have been successful.”

    - Steven Simon
  • They are good people who want to help you.

    “I am now in a more comfortable financial situation. I can now go out and buy myself the things I need, without worrying how I am going to do that. Because I am well aware that I am not capable of getting or keeping a job.”

    - Edwin Jimenez
  • They won us a lot of money.

    “Levy Konigsberg, in my opinion, is a great law firm. They took very well care of us and I believe that they cared very much about our case. They were great attorneys.”

    - Karen
LEVY KONIGSBERG IN THE NATIONAL MEDIA
  • National Trial Lawyers
  • Super Lawyers
  • Martindale-Hubbell Peer Review Rated
  • BBB A+

CHOOSE LEVY KONIGSBERG

Start with a FREE Consultation
  • Please enter your first name.
  • Please enter your last name.
  • Please enter your phone number.
    This isn't a valid phone number.
  • Please enter your email address.
    This isn't a valid email address.
  • Please make a selection.
  • Please enter a message.