Wells Fargo told to rehire whistleblower, pay $5.4 million
NEW YORK: The US government ordered Wells Fargo & Co to reinstate a former bank manager who was fired after reporting suspected illegal behaviour to his superiors and on a company hotline.
The manager, who wasn’t identified, was dismissed in 2010 after reporting on incidents of suspected bank, mail and wire fraud by two bankers in the Los Angeles area, according to a statement on Monday from the Occupational Safety and Health Administration. The San Francisco-based lender also was ordered to give the whistleblower about $ 5.4 million in back pay, compensatory damages and legal fees after OSHA determined his warnings were at least a contributing factor in the termination.
While the agency didn’t elaborate on the alleged misconduct, regulators announced in September that Wells Fargo employees sought for years to meet aggressive sales targets by opening unauthorized accounts for customers. The scandal triggered investigations and congressional hearings, prompting the lender to shake up leadership, deny bonuses to executives, and fire some senior managers in the consumer business.
Wells Fargo said it disagreed with OSHA’s findings and would request a full hearing on the matter, bank spokesman Vince Scanlon said in an emailed statement.
The manager, who wasn’t identified, was dismissed in 2010 after reporting on incidents of suspected bank, mail and wire fraud by two bankers in the Los Angeles area, according to a statement on Monday from the Occupational Safety and Health Administration. The San Francisco-based lender also was ordered to give the whistleblower about $ 5.4 million in back pay, compensatory damages and legal fees after OSHA determined his warnings were at least a contributing factor in the termination.
While the agency didn’t elaborate on the alleged misconduct, regulators announced in September that Wells Fargo employees sought for years to meet aggressive sales targets by opening unauthorized accounts for customers. The scandal triggered investigations and congressional hearings, prompting the lender to shake up leadership, deny bonuses to executives, and fire some senior managers in the consumer business.
Wells Fargo said it disagreed with OSHA’s findings and would request a full hearing on the matter, bank spokesman Vince Scanlon said in an emailed statement.
