Wells Fargo’s employee fraud boomeranged

Federal authorities issued a $3 billion fine to the bank. Criminal and civil charges have been settled and the case concerning the Justice Department and Securities and Exchange Commission was resolved.

The major incident happened nearly four years ago, and about 5,300 employees were subsequently fired.

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During 14 years there were unceasing violations which included bank records falsification, usage of fake PIN numbers and email addresses, misuse of personal information, impact on customer credit ratings and scheming which involved illegal money making.

The bank employees would open accounts, transfer clients’ money and submit applications while customers were completely unaware.

Numbers are impressive – 1.5 million accounts got created by the specialists; over 560,000 applications were submitted for credit card accounts; about 14,000 accounts brought fees which equaled $400,000. The fees were drawn out from people whose accounts would appear to have not enough money – as the employees transferred clients’ funds from their accounts to the fake ones.