Wells Fargo, a San Francisco-based multinational financial services company, as per a recent press release statement on Thursday, Feb. 28th 2019, cracked down hard on 20 current and former Wells Fargo employees, which includes the executives, directors, and Wells Fargo’s current & former CEOs, for fake and unauthorized bank account creation by bank officials.
The company, as per reports, came down with a settlement figure amounting to $240 million dollars, which the insurers of these 20 employees, which includes the CEO Tim Sloan and his predecessor John Stumpf, have to pay to the bank.
Earlier, in 2017, the bank’s fraudulent activity came to limelight, with reports of 3.5 million fake bank accounts and credit card numbers created to boost sales figures. The bank then fired an approximate 5,300 Wells Fargo employees, who were a part of or were directly engaged in the shady deal.
Recently, the bank settled the dispute claiming that the bank officials resolved to malpractices, breaching their fiduciary duties, even though they were well aware of the fraudulent activities, they consciously disregarded the bogus accounts.
But the officials deny any kind of wrongdoing in agreeing to the settlement filed with the San Francisco federal court. Furthermore, the lawyers for the shareholders called the recent Wells Fargo accord as “the largest insurer-funded cash settlement in a US shareholder derivative lawsuit”.