Daily Archives: December 31, 2016

You can use campaign funds to go see the president-elect in New York?

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Calif. Firms Join Forces in Employee RICO Suit Against Wells Fargo

Amid a flurry of lawsuits and government probes spinning out from Wells Fargo & Co.’s fake-accounts scandal, a group of California plaintiffs lawyers teamed up this week to bring a new employment suit, looking to test out an expanded set of legal theories.

Los Angeles-based lawyer Jonathan Delshad joined forces with a trio of other plaintiffs firms in California—Schonbrun Seplow Harris & Hoffman of Venice, McCracken Stemerman & Holsberry of San Francisco and Pessah Law Group of Los Angeles—to bring a proposed class action on behalf of former Wells Fargo employees.

The new suit, filed Dec. 27 in Oakland federal court, follows an earlier class action complaintin California state court that Delshad brought in September. Both are grounded in similar allegations that Wells Fargo set unreasonably aggressive sales goals for low-level employees and that, in turn, employees often wound up using fake customer contact information to open new accounts and meet sales quotas.

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New York wants to cut ties with disgraced Wells Fargo

New York to Wells Fargo: fuhgeddaboudit!

New York City is the latest state or city to consider cutting business ties with the embattled San Francisco banking giant in the wake of a sham-accounts scandal that exploded in September, The Post has learned.

Wells Fargo inked a contract with New York’s Department of Finance earlier this year to process credit-card transactions.

The deal runs from July 1 to June 30, 2021.

Wells Fargo will pocket $1.3 million a year under the deal, according to a copy of the paperwork obtained by The Post.

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Wells Fargo Settles With Brokers Over Claims of Racial Bias

  • Bank to pay $35 million to about 500 black financial advisers
  • Wells Fargo says it still disagrees with brokers’ claims

Wells Fargo & Co. settled a dispute with a group of black brokers claiming the bank failed to give them the same career opportunities as their white colleagues.

The bank will pay $35 million to more than 500 financial advisers and trainees, according to a settlement agreement filed Friday. Wells Fargo also agreed to add employees tasked with recruiting and coaching black brokers, and to set up a $500,000 business-development fund.

“We do not agree with the claims in the lawsuit, but believe that putting this matter behind us is in the best interests of our team members, clients and investors,” Helen Bow, a spokeswoman for the San Francisco-based bank, said in an e-mail.

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For Whistleblowers, Repercussions Are Felt Beyond Wells Fargo

Former workers at Wells Fargo who resisted pressure to push banking products on customers who didn’t want them say the bank retaliated against them by docking their permanent record, sabotaging future job prospects.

OBERT SIEGEL, HOST:

2016 saw one of the biggest banking scandals in U.S. history. Regulators say Wells Fargo opened as many as 2 million credit card and checking accounts in customers’ names without their approval. On top of that, former Wells Fargo workers tell NPR that the bank destroyed their careers after they tried to report wrongdoing. Capitol Hill is investigating. We should say, NPR receives financial support from Wells Fargo. NPR’s Chris Arnold has our story.

CHRIS ARNOLD, BYLINE: It hasn’t been the happiest holiday season for a former Wells Fargo worker named David. After the bank fired him from his job at a branch in Florida last year, David’s been making half of what he used to. He can’t afford his rent anymore. So instead of wrapping up presents, David’s been packing up his belongings.

DAVID: It is a strain. I’m packing boxes, putting stuff in storage. And I’m moving a one-bedroom apartment into a storage unit and then moving into one room in a person’s house.

ARNOLD: Which is not where David wants to be at 54 years old and heading into the new year.

DAVID: On New Year’s Eve, I will be moving.

ARNOLD: Over the past few months, NPR has talked to former Wells Fargo workers in Florida, Pennsylvania, New Jersey, Los Angeles and San Francisco. They all say that managers at the bank retaliated against them for calling the company’s ethics line and pushing back against intense sales pressure to sign customers up for multiple credit cards and checking accounts.

DAVID: There’s no need to have all those accounts, especially when they’re charging you fees.

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