John Stumpf, the Mr. Clean banker, has another scandal than the fake accounts scandal:
NOTICE TO WELLS FARGO CURRENT AND FORMER EMPLOYEES: Zamansky LLC Investigates the Wells Fargo 401(k) Plan for Possible ERISA Violations
NEW YORK–(BUSINESS WIRE)–Zamansky LLC announces that it has commenced an investigation of Wells Fargo Company (NYSE:WFC) on behalf of its current and former employees over the Wells Fargo 401(k) Plan (the “Plan”) for potential violations of the federal Employee Retirement Income Security Act (“ERISA”). ERISA imposes fiduciary duties to prudently manage and invest plan assets. We are investigating whether these duties were violated by the continued offering of Wells Fargo company stock as an investment option for employees under the Plan.
On September 8, 2016, Bloomberg News reported that Wells Fargo was fined $185 million by various regulators to resolve claims that bank employees allegedly opened deposit and credit-card accounts without customers’ approval to satisfy sales goals and earn financial rewards. The opening of fictitious accounts dates back to 2011 and was prompted by aggressive sales goals put by Wells Fargo on its employees, according to news reports. Some commentators have questioned whether Wells Fargo inflated its revenues through these tactics.
According to employee stock and investment fraud attorney, Jake Zamansky, Wells Fargo employees who purchased and held company stock through the Plan since 2011 may have had their retirement savings damaged. The allegations about Wells Fargo’s practices raise serious issues whether the Plan’s fiduciaries properly executed their duties under ERISA, he states. ERISA is designed to protect employees’ retirement savings from imprudent and inappropriate investments, Zamansky states.