The Misconduct In Wells Fargo's Employee

Wells Fargo’s Unethical Tactics The Sarbanes-Oxley Act of 2002 was put in place to prevent corporations from committing accounting fraud or corruption. When a corporation manages somehow to get passed all the laws they do anything to keep the corruption going by covering up everything. With this going on the company’s main focus is keep the lies going and firing whoever is in the way. Wells Fargo has stated that they have fire over a hundred thousand people throughout the nation for being a part of the illegal activity in the company. Unfortunately for Wells Fargo employees are coming out from hiding telling their side of the story.

The Wells Fargo scandal involved a variety of stakeholders who have stake in the issue; however, the main stakeholders include the consumers, the employees and their families, and stockholders of the organization. The affect these stakeholders suffer varies, but the ultimate affect the scandal has had is violation of trust

According to the book, “The term trust refers to the confidence in a relationship that the other party will act honorably and fulfill legitimate expectations” (Friedrichs 9). Individuals put their faith in a corporation or individual because some people want to see the best in people. “We put our faith in the banks that store our money, the corporations that employ us, the retail stores where we purchase our items, a stockbroker in which we invest in and so much more” (Friedrichs 9). The book is trying to tell us that trust is involved in everything that we do every day. In the book it also states that, “trust and it violations are certainly key elements in white collar crimes” (Friedrichs 9) Trust between two individuals can be broken.. According to the FBI, “white collar crimes are not dependent on threat or physical violence” (FBI). The FBI wants us to note that corporations or individuals do not threaten anyone or physically harm the individual. Wells Fargo is a perfect example of trust and white collar crimes. Wells Fargo

Over the past five years Wells Fargo employees opened 2 million phony accounts for customers without their knowledge. The phony accounts helped employees reach sales goals while leaving customers with monthly charges from the false accounts. Since September when the fraud was discovered Wells Fargo has paid fines, stopped employee incentive initiatives and CEO John Stumpf forfeited his performance pay (Merle). The Consumer Financial Protection Bureau (CFPB) created after the financial crisis issued Wells Fargo the largest fine since its creation in 2011. (Talton). The CFPB hit Wells Fargo with a $185 million fine, the largest in their history and is being scrutinized for being an amount that is easily payable by Wells Fargo and will not be

IV. Hiding or divulging information: Goldman bet against their clients several times. They knew material information on certain investment; however, they never communicated that to their clients because they were making money off them.

Breach of Ethics: The Case of Wells Fargo Bank The Issue On September 8 2016, the Consumer Financial Protection Bureau (CFBP) announced that it was taking an enforcement action against Wells Fargo Bank . Wells Fargo is a Fortune 100 company and one of the "Big Four Banks" of the United States. Investigations conducted by the Bureau revealed that employees of the bank created unauthorized deposit and credit card accounts across the country to meet sales goals. Over the years, the bank’s employees opened over 1.5 million fraudulent bank accounts and 0.5 million fake credit card accounts for customers, to meet sales targets and obtain bonuses. The affected consumers, were being harmed by the associated charges and fees for these accounts. The fees include insufficient funds or overdraft fees for the deposit accounts and annual fees for credit card accounts.

Wells Fargo Ethical Decisions On Thursday, September 8, 2016, federal regulators found that over two million fake accounts were created in a scam from Wells Fargo (Dugan). According to the New York Post, it has just been discovered that the Wells Fargo former senior executive vice president, Carrie Tolstedt, is linked to the scamming of Wells Fargo customers (Report). The many other employees were fired since the scam was discovered in 2011, however, according to the New York Post, Tolstedt was praised by Wells Fargo CEO John Stumpf, allowed to leave, and not lose any of her compensation (Report). This incident was highly unethical and resulted in customers and employees losing their trust in Wells Fargo.

As there is a lot of cases, prosecutor has to conduct, there ought to be some misconduct in some progress. “A Tacoma man convicted of child rape and molestation two years ago did not receive a fair trial because a Pierce County deputy prosecutor committed misconduct during closing arguments, the Washington Court of Appeals has ruled.” Freeing a guilty man because of misconducting is pretty guilty itself, on top of that, the person who misconduct during closing arguments was deputy prosecutor. “The latest reversal came Tuesday, when a three-judge panel from Division II decided Alfred James Thierry Jr. was denied a fair trial because of deputy prosecutor Kara Sanchez improperly inflamed the jury during her closing argument.” “Thierry is entitled to a new trial, the panel said.” Child rape cases is one of the most popular in U.S., or even around the world.

Wells Fargo Scandal Wells Fargo founded in 1852 is known for being a financial services company. Wells Fargo provides banking, insurance, investment, mortgage, and consumer and commercial financial services through more than 8,600 locations, 13,000 ATM’s, online, and mobile devices. Wells Fargo is headquartered in San Francisco, California but has a

Wells Fargo is one of the four largest banks known as the “Big 4” along with Bank of America, Chase, and Citibank. Each one of these bank holding assets are well above the low billions. Within in the last couple of weeks, there have been many reports in the media regarding the illegal banking practices of Wells Fargo. Federal prosecutors have launched a probe into Wells Fargo’s unscrupulous and intense sales tactics.

Wells Fargo Bank filed a lawsuit, in September 2014, against the accounting firm Worley Stroud & Associates PC claiming professional negligence. Wells Fargo accused Worley Stroud and two of its representatives of causing over $25 million worth of damages through their accounting errors. In March 2008, Wells Fargo agreed to make an asset-based loan to an agricultural commodity company, by the name of West Plains Co., where the amount of money lent would be dependent on the amount of assets the company held. However, Wells Fargo says that they lent $20 million more than they otherwise would have lent. Harry Worley and DeWitt Stroud of Worley Stroud & Associates PC were responsible for auditing West Plains’ financial statements from at least

I believe the reason why former employees had to result to these kinds of practices was because they didn't know better. Perhaps they were told by their employer or supervisor that it was fine to do this practices. Another option is that they felt the pressure to meet certain goals and thats was the obvious choice for them to do. Sales goals can go either way it just depends on how it's being practiced. Wells Fargo couldn't handle it properly and there you have the final results of them not using the right practices. Unfortunately its becoming more rare to find business that place more importance on people instead of profit. Business main priority is to earn profit and the people comes secondary to

Bank employees are alleged to have used existing customer names and accounts to open new checking accounts and transfer funds to them, create new credit cards, enroll in online banking, and order and activate debit cards without customer knowledge. Consequently, Wells Fargo employees were victims of contextual pressures. Furthermore, the employees act in unethical conducts causing the company in a loss of

Well Fargo Bank is one of the biggest banks in United States. Well Fargo is currently being sued over 185 Million Dollars and 5,300 were fired for making fake account.

Paper 2: Who Knew? Wells Fargo CEO John Stumpf had to recently resign as illegal banking practices cost his bank $185 million in fines as Wells Fargo employees opened nearly 1.5 million fraudulent bank accounts and applied for 565,000 credit cards that were not authorized by customers. The Wells Fargo board of directors rightly allowed John Stumpf to resign instead of taking a more aggressive action of dismissing him.