Wells Fargo paid $ 37m for foreign fraud


US banking reforms

Wells Fargo has agreed to pay $ 37m to address the government’s claims US Bank The most fraudulent customers in foreign exchange transactions, the most recent sanctions since the false record broke five years ago.

U.S. prosecutors say they are complaining about a lawsuit filed by the government on Monday Wells Fargo from 2010 to 2017 it paid about 800 customers in commercial transactions and deliberately displayed the prices they were offered.

“Through this kind of widespread and widespread fraud, Wells Fargo has been able to secretly extort tens of millions of dollars from customers who are not eligible for the bank,” said a New York state judge.

Wells Fargo declined to comment.

The third-largest bank in America and the economy has been tapped in the scandal that has plagued it billions of dollars and fines, toppled two senior officials and prompted the Federal Reserve to impose sanctions growth limits on his full paper.

Charlie Scharf was brought in as a senior in 2019 to help restructure the bank, but corporate sanctions remain.

Earlier this month the Office of the Treasurer tried a $ 250m penalty against the bank by taking too long to resolve the problems that the bank regulator listed in the 2018 permit.

In Monday complaints about foreign exchange transactions, state attorneys said workers at Wells Fargo robbed customers through a so-called “big figure trick” method, which involves changing numbers at a bargain price to increase. According to court documents, a Wells Fargo salesman told a fellow customer “he did not delay the fig tree one day. Do you want to take a little?”

The well-known scheme “BSWIFT pinata” is said to affect workers who promote the decline in trade by getting the best prices for Wells Fargo and the worst consumer prices on wires. A bank employee compared this to getting candy from a piñata, according to the complaint.

Lawyers said through “improper financial incentives…. Wells Fargo has set up a workplace where fraud or customer access is a viable business.”

The same charges have been leveled against it for forcing employees to commit fraud in other banking sites including sales where employees have created millions of fake accounts and credit accounts without permission.

“I still have a long way to go from here to achieve everything,” Wells Fargo chief financial officer Mike Santomassimo told reporters at a press conference shortly before the announcement of OCC sanctions. “It’s not always a straight line, we have problems along the way. Hopefully we are getting smaller. ”



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