5,300 Wells Fargo employees were forced to resign or were fired amid a huge scandal involving hundreds of thousands of customers and millions of dollars. Meanwhile, a handful of employees filed a class action suit on behalf of thousands of employees against Wells Fargo because they had been demoted or even fired for refusing to participate in the bank’s deceptive practices.
The Wells Fargo Scandal and its Impact on Employees
Wells Fargo had a brilliant but highly illegal scheme to bolster its stock price. They used customers’ personal information gleaned from legitimate accounts to create false ones, unbeknownst to the customers. Suddenly Wells Fargo customers who had signed up for savings accounts found themselves paying fees for checking accounts they had never requested or authorized. Wells Fargo customers were not the only victims here.
When employees refused to participate in the plot, or when they phoned into the ethics hotline to report the fraudulent actions, they claim they lost their jobs as a result.
Wells Fargo, on the other hand, asserts that no one was fired unless they were not meeting clear company goals. The bank claims to endeavor to create a culture of serving customers with stellar ethics and integrity.
Irrespective of Wells Fargo’s assertions, the class action suit alleges a number of legal violations, including Dodd-Frank and whistleblower protections afforded through Sarbanes-Oxley. Beyond the problems related to the fraud, the suit claims overtime intrusions in violation of the Fair Labor Standards Act.
Real People at Wells Fargo Who Were Hurt
Bill Bado is just one of the many employees whose career was destroyed by the fraudulent plan. Bill refused to create phony pin numbers, fake accounts, and sham email accounts. He took matters a few steps further and called the ethics hotline. Then Bill emailed human resources to report the illegal and unethical practices going on all around him and that he was being ordered to carry out, as well. A short eight days later, Wells Fargo to respond with his untimely termination. The reason given for the firing was tardiness.
Testimony before a Congressional committee suggests that Wells Fargo had methods to systematically get rid of whistleblowers and avoid accusations of retaliation. One such strategy involved the simple, yet effective practice of closely monitoring employees who had reported problems in the sales department. After looking closely enough, employees would inevitably be spotted with a fireable flaw, such as tardiness.
Heather Brock, a senior banker with Wells Fargo, experienced bullying, defamation of character, and false accusations before being fired from her post. Her belief is that the termination was a result of her complaints to the ethics line about illegal practices.
Do Not Submit to Powerlessness
These employees, who were almost entirely low-level workers, felt powerless at work. They risked losing their job if they complained to the ethics line. If they did not, they were coerced into performing unethical tasks that could lead to legal consequences if discovered.
If you work in Sonoma County, Mendocino County or Lake County California and are faced with an impossible choice like this, contact an experienced employment attorney right away. When workplace irregularities have you concerned and retaliation for reporting it is a serious possibility, contact the knowledgeable team at Beck Law P.C., in Santa Rosa. We will go to bat for you. Schedule your confidential consultation today.