Nearly seven years — and at least $4.7 billion in federal regulatory fines — after Wells Fargo & Co.’s fraudulent customer account scandal erupted in September 2016, the bank is the subject of a federal lawsuit alleging the same conduct with a twist.
Wells Fargo & Company and its subsidiary, Wells Fargo Bank, N.A., have agreed to pay $3 billion to resolve their potential criminal and civil liability stemming from a practice between 2002 and 2016 of pressuring employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretenses or without consent, often by creating false records or misusing customers’ identities, the Department of Justice announced today.
Wells Fargo & Co. agreed Friday to pay a massive $3 billion penalty and to accept a three-year deferred prosecution agreement to avoid a criminal trial over its fake bank account scandal.
Workplace equitySettlement
Wells Fargo & Co. settled a lawsuit alleging discriminatory hiring and lending practices
The settlement involving Wells Fargo & Co. concerns workplace discrimination.
Low- and moderate-income homebuyers from 50 cities will be eligible for new mortgage assistance programs after Wells Fargo & Co. settled a lawsuit alleging discriminatory hiring and lending practices.
Corporate conductSettlement
Wells Fargo settles legal woes from 2016 fake accounts
Wells Fargo hired CEO Charles Scharf in 2019 to address the 2016 fake accounts scandal, resolving the matter through a settlement.
Nearly seven years — and at least $4.7 billion in federal regulatory fines — after Wells Fargo & Co.’s fraudulent customer account scandal erupted in September 2016, the bank is the subject of a federal lawsuit alleging the same conduct with a twist.
Scharf President and CEO Wells Fargo & Company 420 Montgomery Street San Francisco, CA 94104 Dear Mr. Scharf: In light of growing incidences of fraud in the financial system, we write to request information about the protocols and systems you have in place to protect consumers. In 2023, consumers lost more than $10 billion due to fraud—through both unauthorized and fraudulently induced transactions1—up 14 percent from the year before.2 According to the Federal Trade Commission, in terms of dollars lost, “Bank Transfer or Payment” is the largest payment method used by fraudsters.3 Additionally, the FBI has received reports of nearly $3 billion in losses associated with “business email compromise” scams overall, which are carried out by fraudsters who compromise email accounts to conduct unauthorized transfers of funds— usually by wire.4 Those figures are deeply troubling.
The settlement is the latest regulatory matter resolved under Wells Fargo CEO Charles Scharf, who was hired in 2019 to clean up the bank's legal woes that began with a 2016 fake accounts scandal.
Wells Fargo & Co. agreed Friday to pay a massive $3 billion penalty and to accept a three-year deferred prosecution agreement to avoid a criminal trial over its fake bank account scandal.
Corporate conductConfirmed
Wells Fargo & Company pays $87 million civil penalty
Wells Fargo & Company pays $87 million civil money penalty.
Singh Bank of New York, New York, New York Section 19 Letters /boarddocs/legaldevelopments/ordersother/section19/2012/20120312.pdf Letter (PDF) 2012-03-08 2014-09-01 Central Bancorp, Inc., Garland, Texas Written Agreement /newsevents/pressreleases/enforcement20120313a.htm Press Release 2012-02-17 2014-03-14 Commerce Bancshares, Inc., Edina, Minnesota Written Agreement /newsevents/pressreleases/enforcement20120223a.htm Press Release 2012-02-13 Citigroup Inc., New York, New York Civil Money Penalty, $22,000,000 /newsevents/pressreleases/enforcement20120213a.htm Press Release 2012-02-10 Ally Financial Inc., Detroit, Michigan;Residential Capital, LLC, Minneapolis, Minnesota; and GMAC Mortgage, LLC, Fort Washington, Pennsylvania Civil Money Penalty, $207,000,000 /newsevents/pressreleases/enforcement20120213a.htm Press Release 2012-02-09 Wells Fargo & Company, San Francisco, California Civil Money Penalty, $87,000,000 /newsevents/pressreleases/enforcement20120213a.htm Press Release 2012-02-09 JPMorgan Chase & Co., New York, New York and EMC Mortgage Corporation, Lewisville, Texas Civil Money Penalty, $275,000,000 /newsevents/pressreleases/enforcement20120213a.htm Press Release
Workplace equityConfirmed
Wells Fargo disciplined employee for race complaint
Wells Fargo disciplined and terminated an employee in retaliation for complaining about racial and national origin discrimination, violating Title VII.
An OFCCP investigation found that – from January 1, 2014, through December 31, 2014 – Wells Fargo & Co.’s Phone Bank Premier, Home Equity & Online Customer Service (OCS) unit discriminated against 2,066 female applicants for positions as online customer service representatives in Glen Allen, Virginia, and Salt Lake City, Utah, and 282 African American applicants for phone banker positions in Phoenix, Arizona.
A finding by the EEOC determined that Wells Fargo disciplined and terminated a Minneapolis Wells Fargo employee in retaliation for complaining of differential treatment based on her race and national origin in violation of Title VII of the Civil Rights Act of 1964.
Corporate conductAllegation
Wells Fargo & Company is accused of victimizing customers
Wells Fargo & Company is accused of victimizing customers through pernicious and often illegal sales tactics.
The banking business model employed by Wells Fargo is based on selling customers multiple banking products, which Wells Fargo calls “solutions.” In order to achieve its goal of selling a high number of “solutions to each customer, Wells Fargo imposes unrealistic sales quotas on its employees, and has adopted policies that have, predictably and naturally, driven its bankers to engage in fraudulent behavior to meet those unreachable goals.
The Complaint, which was consistent with the information Respondents Julian had received over the years related to the Bank’s sale practices, alleged the following: For years, Wells Fargo & Company and Wells Fargo Bank, National Association (collectively “Well s Fargo”) have victimized their customers by using pernicious and often illegal sales tactics to maintain high levels of sales of their banking and financial products.
Corporate conductSettlement
Wells Fargo & Company entered into five consent orders with the Consumer Financial Protection Bureau
The settlement involving Wells Fargo &
Company concerns consent orders.
, and its holding company, Wells Fargo & Company (collectively, “Wells Fargo”) entered into five consent orders with the Consumer Financial Protection Bureau (“ CFPB”), Office of the Comptroller of the Currency (“ OCC”), and Federal Reserve System (“Federal Reserve”) to settle the regulators’ allegations of widespread consumer abuses and compliance failures within Wells Fargo.
, and its holding company, Wells Fargo & Company (collectively, “Wells Fargo”) entered into five consent orders with the Consumer Financial Protection Bureau (“ CFPB”), Office of the Comptroller of the Currency (“ OCC”), and Federal Reserve System (“Federal Reserve”) to settle the regulators’ allegations of widespread consumer abuses and compliance failures within Wells Fargo.
, and its holding company, Wells Fargo & Company (collectively, “Wells Fargo”) entered into five consent orders with the Consumer Financial Protection Bureau (“ CFPB”), Office of the Comptroller of the Currency (“ OCC”), and Federal Reserve System (“Federal Reserve”) to settle the regulators’ allegations of widespread consumer abuses and compliance failures within Wells Fargo.
, and its holding company, Wells Fargo & Company (collectively, “Wells Fargo”) entered into five consent orders with the Consumer Financial Protection Bureau (“ CFPB”), Office of the Comptroller of the Currency (“ OCC”), and Federal Reserve System (“Federal Reserve”) to settle the regulators’ allegations of widespread consumer abuses and compliance failures within Wells Fargo.
Corporate conductAllegation
Wells Fargo is accused of discharging employee in retaliation
Wells Fargo is accused of discharging an employee in retaliation for exercising her freedom of association rights.
And on June 15, 2022, an unfair labor practice charge was filed with the National Labor Relations Board alleging that Wells Fargo discharged an employee in retaliation for exercising her freedom of association rights.1
Corporate conductSettlement
The U.S. Securities and Exchange Commission conducted a civil investigation to determine whether Wells Fargo & Company’s historical statements regarding the Community Bank
Securities and Exchange Commission (“SEC”) is conducting a civil investigation to determine whether Wells Fargo & Company’s historical statements regarding the Community Bank and its cross-sell metric violated the federal securities laws.
Securities and Exchange Commission (“SEC”) is conducting a civil investigation to determine whether Wells Fargo & Company’s historical statements regarding the Community Bank and its cross-sell metric violated the federal securities laws.
Exhibit 99.1 News Release | February 21, 2020 Wells Fargo Reaches Settlements to Resolve Outstanding DOJ and SEC Investigations Related to Historical Community Bank Sales Practices • Settlement includes agreement with DOJ resolving criminal investigation • Resolution also covers DOJ and SEC civil investigations SAN FRANCISCO – February 21, 2020 – Wells Fargo & Company today announced that it has entered into agreements with the United States Department of Justice (DOJ) and the United States Securities and Exchange Commission (SEC) to resolve these agencies’ investigations into the Company’s historical Community Bank sales practices and related disclosures.
Corporate conductConfirmed
Wells Fargo & Co. faces federal investigations
Wells Fargo & Co. is facing federal investigations into its anti-money laundering program for the second time in nine years.
Wells Fargo & Co. is facing federal investigations into its anti-money laundering program for the second time in nine years.
Corporate conductOfficial statement
The Consumer Financial Protection Bureau filed a lawsuit alleging that Zelle
Scharf: We write to request information regarding Wells Fargo’s most recent efforts to protect consumers from scams and fraud on peer-to-peer (P2P) payment platforms, including Zelle. Zelle is a P2P payment platform associated with significant scams and fraud, as demonstrated in a 2022 investigation by Senator Warren’s staff,1 an investigation conducted last year by the Senate Permanent Subcommittee on Investigations (PSI),2 oversight conducted by the House Financial Services Committee,3 and a December 2024 lawsuit filed by the Consumer Financial Protection Bureau (CFPB) against JPMorgan Chase, Wells Fargo, Bank of America, and the fintech company that operates Zelle, Early Warning Services.4 Zelle is owned by seven U.S. banks.
Scharf: We write to request information regarding Wells Fargo’s most recent efforts to protect consumers from scams and fraud on peer-to-peer (P2P) payment platforms, including Zelle. Zelle is a P2P payment platform associated with significant scams and fraud, as demonstrated in a 2022 investigation by Senator Warren’s staff,1 an investigation conducted last year by the Senate Permanent Subcommittee on Investigations (PSI),2 oversight conducted by the House Financial Services Committee,3 and a December 2024 lawsuit filed by the Consumer Financial Protection Bureau (CFPB) against JPMorgan Chase, Wells Fargo, Bank of America, and the fintech company that operates Zelle, Early Warning Services.4 Zelle is owned by seven U.S. banks.
Corporate conductConfirmed
Wells Fargo & Company was targeted
Authorities • Prudential Regulation Authority/Bank of England • Financial Conduct Authority Irish Authorities • Central Bank of Ireland Public Section 2025 Wells Fargo & Company Targeted 165(d) Resolution Plan Page | 62 17 In addition to Wells Fargo Bank, N.A. - London Branch, WFBNA has branches in other jurisdictions, which are not designated as Material Entities, that are subject to other regulatory bodies.
Authorities • Prudential Regulation Authority/Bank of England • Financial Conduct Authority Irish Authorities • Central Bank of Ireland Public Section 2025 Wells Fargo & Company Targeted 165(d) Resolution Plan Page | 62 17 In addition to Wells Fargo Bank, N.A. - London Branch, WFBNA has branches in other jurisdictions, which are not designated as Material Entities, that are subject to other regulatory bodies.
Corporate conductRuling
Wells Fargo & faces ruling over financial law
The final decision involving Wells Fargo & concerns financial law.
On February 21, 2020, the Commission instituted and simultaneously settled cease-and-desist proceedings against Wells Fargo & Company (the “Respondent” or “Wells Fargo”).
At all relevant times, Wells Fargo was a publicly traded financial services corporation with common stock registered under Section 12(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and quoted on the New York Stock Exchange (Ticker: WFC).
According to the Order, Wells Fargo, among other things, failed to disclose to investors that the Community Bank’s sales model had caused widespread unlawful and unethical sales practices misconduct that was at odds with its investor disclosures regarding needs-based selling, and that the publicly reported cross-sell metric included significant numbers of unused or unauthorized accounts.
The Commission found that Wells Fargo violated Section 10(b) of the Exchange Act and Rule 10b-5 thereunder and ordered it to pay a $500 million civil money penalty to the Commission.
: : : : : : : ORDER APPROVING PLAN OF DISTRIBUTION On February 21, 2020, the Commission issued an Order Instituting Cease-and-Desist Proceedings Pursuant to Section 21C of the Securities Exchange Act of 1934, Making Findings, and Imposing a Cease-and-Desist Order (“Order”)1 against Wells Fargo & Company (“Wells Fargo”).
At all relevant times, Wells Fargo was a publicly traded financial services corporation with common stock registered under Section 12(b) of the Securities Exchange Act of 1934 (“Exchange Act”) and quoted on the New York Stock Exchange (Ticker: WFC).