Slashdot Mirror

← Back to Stories (view on slashdot.org)

Wells Fargo Employee Informed the Bank of Fake Customer Accounts in 2006 (vice.com)

Posted by msmash on from the body-of-lies dept.

Wells Fargo recently paid fines totaling $185 million for the creation of 2 million unauthorized accounts since 2011. But the international banking and financial institution could be committing this fraud since as early as 2005, according to a letter obtained by Vice News. From the report: A Wells Fargo bank manager tried to warn the head of the company's regional banking unit of an improperly created customer account in January 2006, five years earlier than the bank has said its board first learned of abuses at its branches. [...] A letter written in 2005 and obtained by VICE News details unethical practices that occurred at Washington state branches of the bank, suggesting the conduct began years before previously understood. Dennis Hambek, a former branch manager in West Yakima, Washington, sent a certified letter in January 2006 to Carrie Tolstedt, then Wells Fargo's head of regional banking, outlining unethical "gaming" activity at area branches. In 2007, Tolstedt was made the company's head of community banking, the division where many of the unethical practices occurred.

5 of 104 comments (clear)

  1. WF is corrupt to the core by The-Ixian · · Score: 3, Interesting

    That bank is, by far, the worst when it comes to ethical treatment of customers.

    Especially those who live on the edge (paycheck to paycheck). They have downright sinister overdraft policies and practices.

    I ditched WF years ago and I am happy to be rid of them.

    --
    My eyes reflect the stars and a smile lights up my face.
    1. Re:WF is corrupt to the core by Moheeheeko · · Score: 5, Interesting

      the best thing you could possibly do is find a local federal credit union. They may not have branches everywhere, but you can access all of your account from almost any credit union. I've been a member of the credit union of my hometown for years and ive never had to switch, despite not living within 100 miles of a branch.

  2. Re:broken url to article? by parkinglot777 · · Score: 3, Interesting

    You can look at the article instead. The Vice link doesn't seem to work correctly (or need to register for the feed?).

  3. The most outrageous aspect by MikeRT · · Score: 3, Interesting

    Is that there are at least a few examples of employees reporting to very senior leaders what happened and facing a targeted campaign of reprisal intended to ensure they could not work in that industry again (by revoking certification).

    We need a white collar crime equivalent of Felony Murder while we're at it. If someone suffers financial loss as a consequence (foreseeable or not) of your criminal conduct, you are held liable as though you intended to cause it. Level of intent doesn't matter anymore once you reach legitimate felony intent.

  4. Re:Well this is exciting by magarity · · Score: 3, Interesting

    Wells Fargo slapped with a fine a tiny fraction of a percentage of what they took in by this scam

    I don't think the bank itself as a corporate entity made any money. This was employees trying to game the company for personal bonus money and to meet performance targets.