In a stunning admission of massive fraud reminiscent of the financial crisis of 2008, Wells Fargo today admitted that 5,300 bank employees created millions of false accounts since 2011 in order to charge customers fees. Those 5,300 employees of Wells Fargo have been fired. The bank admitted that employees had opened bank and credit card accounts to hit sales targets and receive bonuses. The number of accounts may total over 1.5 million. In the scheme, money was moved from existing accounts to new ones without the customers’ approval, and the new accounts were then charged new or additional fees. “This kind of thing rarely happens without the knowledge of management, and reflects extremely poorly on the entire organization,” said Frank Beck, President of Beck Capital Management. “We are encouraging our clients to comb through their documents to see if they have been victimized by the bank. We understand that the bank has agreed to pay restitution to all victims; people deserve a refund” said Beck. It is unclear how many members of Wells Fargo upper management lost their jobs as a result of the fraud. For the story from CNN Money, click here.
