Letter warned Wells Fargo of ‘widespread’ fraud in 2007

Former Wells Fargo CEO, John Stumpf, told congress under oath that he was not notified of a serious fake account problem until 2013.

However, CNNMoney has obtained a 2007 letter addressed to Stumpf that warned of widespread “unethical (and illegal) activity” inside Wells Fargo and the “routine deception and fraudulent exploitation of our clients.”

The letter was written by a Wells Fargo (WFC) employee, who had been transferred from the branch after raising sales concerns, and who later won a federal whistleblower retaliation case against the company.

Eerily, the letter seemed to predict the scandal Wells Fargo is dealing with today.

“Left unchecked, the inevitable outcome shall be one of professional and reputational damage, consumer fraud and shareholder lawsuits, coupled with regulator sanctions,” the letter warned.

It said the illegal activity in Northern California was “widespread and so highly encouraged that it has become a normal sales practice.”

The employee copied Stumpf on a second letteraddressed to the audit and examination committee of Wells Fargo’s board of directors.

Read on.

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