In: Accounting
Who were the key players in the Wells Fargo Scandal and how were they punished?
Wells Fargo bank had been come up with a well determined scandal of creating millions of fake bank accounts without the customer consents in order to increase the sales and incentives.
The employees of the bank are held as the main key player in committing this fraud as they have mentioned their own contact information on the customer application forms to open the bank accounts.
The customers of the bank began to notice this when they certain unrecognized debits and credit amounts on the bank statements.
The employees started using the bank accounts to debit the account and then credit the account with the same amount as debited from the bank.
In September 2016, 5300 workers of the bank were fired on account of committing this type of fraud and creating around 2.1 million of fake bank accounts.
The bank has been fined with $1 billion on account of charging hundreds of customers without their consent.