City Council inaction in 2015 allows continued Wells Fargo Fraud in Modesto – UPDATE
DATELINE May 4,2015
LA sues Wells Fargo, alleging ‘unlawful and fraudulent conduct’
Rigid sales quotas at Wells Fargo Bank have driven employees to open unauthorized accounts for customers, sticking them with bogus fees and damaging their credit, according to a city of Los Angeles lawsuit that echoes a Los Angeles Times investigation.
The civil complaint, filed Monday in state court in Los Angeles by City Attorney Mike Feuer, says the largest California-based bank encouraged its employees to engage “in unfair, unlawful and fraudulent conduct” through a pervasive culture of high-pressure sales. Employees misused customers’ confidential information and often failed to close unauthorized accounts even when customers complained, the suit alleges. Read more here: http://www.modbee.com/news/nation-world/national/article20242080.html
DATELINE: September 8, 2016
Wells Fargo fined $185 million for improper account openings by Michael Corkery
“California and federal regulators fined Wells Fargo a combined $185 million on Thursday, alleging the bank’s employees illegally opened millions of unauthorized accounts for their customers in order to meet aggressive sales goals.
The San Francisco-based bank will pay $100 million to the Consumer Financial Protection Bureau, a federal agency created five years ago, $35 million to the Office of the Comptroller of the Currency and $50 million to the City and County of Los Angeles. It will also pay restitution to affected customers. Read more here: https://www.nytimes.com/2016/09/09/business/dealbook/wells-fargo-fined-for-years-of-harm-to-customers.html
DATELINE: June 10, 2015
I made the following request to the Modesto City Council:
To: Mayor Marsh, the Modesto city Council, and city clerk Lopez
From: Carmen Sabatino, former Mayor, and The Back Story
Attached are two articles alleging unlawful fraudulent conduct on the part of Wells Fargo Bank I am requesting that the city of Modesto join the city of Los Angeles in this lawsuit. It will be of benefit to the citizens of Modesto who are victims of Wells Fargo Bank, and perhaps prevent the bank from victimizing other citizens. The cost is minimal and the benefits are great. Thank you in advance for your prompt action in bringing this request to the attention of the entire Council for a vote.
The request was ignored. To this day, Fraudulent account activity by Wells Fargo continues in Modesto. Council action would have prevented over two years of financial fraud against its citizens.