Wells Fargo Fires Over 100 Employees For Misuse Of Covid Relief Fund

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Topline

Wells Fargo has laid off more than 100 employees for inappropriately asking for federal coronavirus help, Bloomberg reported Wednesday, joining JPMorgan, which also fired workers for abusing the same loan program.

Highlights

According to an internal rating obtained by Forbes, the employees made “false statements by asking for coronavirus relief funds for themselves,” said human resources director David Galloreese.

The workers are accused of defrauding the Small Business Administration by using the Economic Disaster Loan program, which allows businesses to apply for a $ 10,000 grant and borrow up to $ 2 million.

The memo says the alleged abuse occurred outside of employee roles at the bank.

Galloreese said Wells Fargo will cooperate with law enforcement, although it is not clear whether the bank is already under investigation.

The move comes after JP Morgan discovered that dozens of employees allegedly accessed EIDL relief funds inappropriately and fired employees because of it, CBS News reported.

Crucial quote

“As a company, we are vigilant in detecting fraud. While these examples of wrongdoing are extremely unfortunate and disappointing, they are not representative of the high integrity of the vast majority of Wells Fargo employees, ”the memo reads.

Key context

The list of Wells Fargo scandals continues to grow. CEO Charles Scharf apologized last month for blaming the bank’s struggles to meet its diversity goals on a “limited pool of black talent.” Wells Fargo has repeatedly been sued for discriminatory lending practices, which the bank has denied. And the bank has paid billions to settle criminal and civil charges related to the infamous fake accounts scandal, which resulted in former CEO John Stumpf being banned from banking altogether.

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