Wells Fargo wholesale banking unit probed for fraud
The US Justice Department is probing whether employees in Wells Fargo’s wholesale banking unit committed fraud.
According to people familiar with the matter that spoke to the Wall Street Journal (WSJ), this latest development follows revelations that employees improperly altered customer information.
The WSJ previously reported that some employees in the unit added information on customer documents, such as Social Security numbers and dates of birth, without their consent.
The Justice Department wants more information from the bank to see if management pressure is to blame.
Wells Fargo spokesman Alan Elias says the bank doesn’t comment on regulatory or Justice Department matters. A spokesman for the Justice Department declined to comment.
One of the sources says Wells Fargo has found similar problems in its commercial banking division, which primarily serves middle-market companies, and its corporate trust services group, which helps with the administration of securities issued by companies and governments.
This investigation is another chapter in quite a lengthy saga.
Last month, hundreds of Americans had their homes foreclosed on after software used by Wells Fargo incorrectly denied them mortgage modifications.
Back in June, the United Services Automobile Association (USAA) was suing Wells Fargo on grounds of intellectual property charges for unspecified damages, over USAA’s remote deposit capture patents.
In April, Wells Fargo was hit with a $1 billion fine by the Consumer Financial Protection Bureau (CFPB) for its auto-loan administration and mortgage practices.
While last year, the scandal of employees at Wells Fargo creating millions of fake bank accounts and credit card numbers to boost sales figures got bigger… and worse.