Wells Fargo agreed to pay $ 3 billion and admit irregularities to settle criminal and civil investigations with the Department of Justice and the Securities and Exchange Commission for its fraudulent false account scandal, the Federal Prosecutor’s Office said Friday.
“This case illustrates a complete failure of leadership at multiple levels within the bank,” said federal prosecutor Nick Hanna. “In a nutshell, Wells Fargo changed its reputation hard earned by short-term gains and hurt an untold number of customers along the way,” he added.
Wells Fargo, based in San Francisco, avoids criminal prosecution as part of the agreement. He reached a three-year deferred prosecution agreement to resolve a criminal investigation into false bank records and identity theft.
As part of the agreements, the fourth largest bank in the US He admitted that he raised millions of dollars in commissions and interest that he should not have raised, damaged the credit ratings of the clients and illegally abused the confidential personal information of the clients.
The payment of 3,000 million dollars by Wells Fargo includes a civil fine of 500 million that the SEC will distribute to investors. Remember that Wells Fargo reported a net profit of $ 19.5 billion in 2019.
The agreement represents the latest government sanctions for Wells Fargo and its former address for embezzlement in which millions of fake accounts were created to meet sales quotas.
They included checking and savings accounts, credit and debit cards and bill payment services. Hanna said these practices continued for more than a decade and involved thousands of employees trying to meet unrealistic sales quotas.
“We hope that this fine of 3,000 million, along with staff and structural changes in the bank, will ensure that such behavior does not happen again,” said Hanna.