Financial services giant Wells Fargo (WFC) has found itself in the center of yet another scandal involving its employees this week. In a surprise move, the bank took disciplinary action including termination against nearly a dozen employees of its investment bank division -Wells Fargo Securities – for manipulating the internal system for undue financial gains.
The bankers who face action, including managing directors and analysts, allegedly altered the receipts of their dinner orders to make them look legitimate enough to claim the expense. According to sources, the employees, who belong to the New York, San Francisco, and Charlotte offices, doctored the time of the emailed receipts to get the bank pay for their ‘after-hour’ meals.
The employees doctored the time of the emailed receipts to get the bank pay for their ‘after-hour’ meals
The management has launched a detailed probe into the violation of the expense policy to claim ineligible reimbursements. It is expected that more employees will be brought to book once the investigation progresses.
In a statement sent to Bloomberg, Wells Fargo spokeswoman Jessica Ong said, “we became aware that certain Wells Fargo Securities team members were not complying with the after-hours meals reimbursement policies after they were brought to the attention of our leaders by concerned team members.”
It was found that the employees used to get their dinner delivered by online food services, in violation of the company’s policy that allows those who work beyond the normal working hours to claim payment for their dinner. The matter came to light during a review of the expense filings for the past several months. It is learned that some of the senior officials involved in the scandal resigned voluntarily.
A couple of years ago, Wells Fargo was fined $185 million by regulators following revelations that its employees created fraudulent accounts for customers without seeking consent.
Most Popular
United Parcel Service (UPS) seems on track to regain lost strength
Cargo giant United Parcel Service, Inc. (NYSE: UPS) ended fiscal 2023 on a weak note, reporting lower revenues and profit for the fourth quarter. The company experienced a slowdown post-pandemic
IPO Alert: What to look for when Boundless Bio goes public
Boundless Bio is preparing to debut on the Nasdaq stock market this week, and become the latest addition to the list of biotech firms that have launched IPOs this year.
Nike (NKE) bets on innovation and partnerships to return to high growth
Sneaker giant Nike, Inc. (NYSE: NKE) has been going through a rough patch for some time, with sales coming under pressure from weak demand and rising competition. Post-pandemic, the company