Federal Prosecutors Launch Probe Into Wells Fargo’s Sales Tactics
The Washington Post
September 14, 2016
Jordan A. Thomas comments on recent Wells Fargo investigation involving dishonest sales practices
The Justice Department is investigating Wells Fargo’s improper sales tactics. Federal prosecutors are in the early stages of an investigation after it has been revealed that thousands of Wells Fargo employees created accounts customers didn’t ask for to meet sales goals. Although Wells Fargo had been served with subpoenas, the prosecutors have not decided whether the case warrants criminal or civil charges.
This is the second scandal to hit the big bank. Last week, officials penalized Wells Fargo $185 million for a scheme in which their employees created up to 2 million accounts, for services such as credit cards and savings accounts, that customers did not approve. Employees have been accused of taking funds from an active customer account to create a new one. This resulted to customers getting hit with a variety of fees for accounts that they didn’t know existed.
Partner Jordan A. Thomas was featured in the article and asked, “How probable is it that you would have a firm-wide, multiyear scheme involving thousands and thousands of people that senior leaders weren’t aware of? I think the smart money is that some senior leaders were aware, and it is for that reason that prosecutors are apparently making an inquiry.”