Page 29 - Wells Fargo Bank (C) Case Study

The Fraudulent Accounts

Stumpf, testified before the House Financial Services

Committee in September 2016 regarding the bank’s

unauthorized customer accounts. (7)

Stumpf said the problem, was an ethical lapse among the

5,300 employees, most of them low-level bankers and

tellers, who had been fired for their actions since 2011.

“David Douglas accused WFB in a lawsuit filed Sept. 11 in Los

Angeles County Superior Court that

“three Wells Fargo employees in Century City and Beverly

Hills used his birth date and Social Security number to open

accounts in his name and those of fictitious businesses. At
least one employee forged his signature several times, said

Douglas' lawyer, Michael P. Kade of Los Angeles.

"They put their own addresses on the accounts so he
wouldn't know about it," Kade said. "It showed up on his

credit report — that's how he found out." (15)