Tags: Wells Fargo | fraud | bank | crime

WSJ: Federal Prosecutors Investigate Wells Fargo's Sales Practices

WSJ: Federal Prosecutors Investigate Wells Fargo's Sales Practices

Wells Fargo CEO John Stumpf (inset)

Wednesday, 14 September 2016 04:22 PM

Federal prosecutors are in the early stages of an investigation into sales practices at Wells Fargo & Co, the Wall Street Journal reported, citing people familiar with the matter.

Wells Fargo said last week it would pay $185 million in penalties and $5 million to customers that regulators say were pushed into fee-generating accounts they never requested for.

Prosecutors, who have issued a subpoena for Wells Fargo's documents and materials, are yet to decide if any case, if pursued, would be along civil or criminal lines, the Journal reported.

The investigation is being conducted by the U.S. Attorney's Offices for the Southern District of New York and the Northern District of California, the WSJ said.

Wells Fargo investor Tim Smith said earlier on Wednesday it was "inevitable" that the company would face critical shareholder resolutions after the giant bank agreed to a $190 million settlement with regulators.

Wells Fargo could not be immediately reached for comment.

© 2020 Thomson/Reuters. All rights reserved.


   
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Federal prosecutors are in the early stages of an investigation into sales practices at Wells Fargo, the Wall Street Journal reported, citing people familiar with the matter.
Wells Fargo, fraud, bank, crime
156
2016-22-14
Wednesday, 14 September 2016 04:22 PM
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