Wells Fargo to fork out $3 billion to settle probes on fraudulent sales practices



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Wells Fargo to fork out $3 billion to settle probes on fraudulent sales practices

Wells Fargo & Co., the San Francisco, CA-based leading American multinational financial services provider, world’s fourth-largest lender in terms of revenue, had agreed to pay off a whopping upsum of $3 billon in a bid to resolve civil and criminal investigations on to the US lender’s mischievous sales practice, while Wells Fargo also acknowledged it pressurized its employees to cover up a fake-account scandal, US officials involved in to the probe had unveiled on Friday, the 21st of February 2020.

Besides, according to the Justice Department officials, under the $3 billion settlement deal reached with the US Justice Department alongside US Securities and Exchange Commission (SEC), the San Francisco-based leading global financial services provider would be paying the penalties to the US Justice Department and US SEC, while the lender would also commit to a three-year long deferred prosecution agreement.

On top of that, adding the United States’ fourth-largest lender in terms of total asset, Wells Fargo had forced its employees to create millions of fake accounts and products in order to meet unrealistic sales target between 2006 and 2012, the US Justice Dept.

said in a statement on Friday (February 21st), “Wells Fargo admitted that between 2002 and 2016 it pressured employees to meet unrealistic sales goals that led thousands of employees to provide millions of accounts or products to customers under false pretences or without consent, often by creating false records or misusing customers’ identities. ”