Wells Fargo to Pay $185 Million in Fines After Employees Created 2 Million Fake Deposit and Credit Card Accounts
Wells Fargo, the nation’s third largest bank, will pay $185 million in penalties to federal and city regulators following allegations that the San Francisco-based financial institution’s employees had opened thousands of new accounts for customers without their consent in order to meet sales quotas and earn bonuses.
The bank will pay $100 million in penalties to the Consumer Financial Protection Board, $35 million to the Office of the Comptroller of the Currency. An additional $50 million will be used to compensate the holders of the fraudulent accounts as well as for penalties to San Francisco city officials.
“Wells Fargo employees secretly opened unauthorized accounts to hit sales targets and receive bonuses,” said Richard Cordray, director of the Consumer Financial Protection Bureau, in a statement.
The rogue employees, who opened as many as 1.5 million bogus deposit accounts, created phony PIN numbers and fake email addresses, the agency said. They also created over half a million bogus credit card accounts.
Wells Fargo said it has fired over 5,300 employees in connection with the investigation.
(Photo: Accura Media Group)