Wells Fargo Deferred Prosecution Agreement
The comparison of Wells Fargo`s FIRREA was conducted with the DOJ Civil Division (Commercial Litigation Branch) and the U.S. Office Attorney`s Office for the Central District of California. The transaction agreement does not add new factual claims. Wells Fargo acknowledges that for more than a decade, its employees have been engaged in “gambling” practices in which they used existing customer data to conduct a series of fraudulent activities, such as opening new accounts and lines of credit, without the customer`s consent. The bank`s employees handed over large sums of money to unauthorized accounts, created fake pin numbers and even falsified customer signatures into the system, according to a statement of facts attached to a deferred lawsuit agreement. The adjourned prosecution agreement was processed by U.S. Attorneys in Los Angeles and Charlotte, with the support of the Federal Bureau of Investigation, the Federal Deposit Insurance Corporation – Office of Inspector General, the Federal Housing Finance Agency – Office of Inspector General, the Office of Inspector General for the Board of Governors of the Federal Reserve System and the Consumer Financial Protection. and the U.S. Postal Inspection Service. The 16-page statement of facts, along with the Deferred Criminal Prosecution Agreement and the Civil Comparison Agreement, describes the evolution of the behaviour of Well Fargos Community Bank, then Wells Fargo`s largest operating segment and still accounted for more than half of the company`s revenue.
The statement of facts shows the knowledge of the behaviour by the community bank`s management. In the statement of facts, Wells Fargo acknowledged that the government`s decision to conclude the agreement on the adjourned criminal prosecutions and the civil agreement took into account a number of factors, including Wells Fargo`s substantial cooperation and support in government investigations; Wells Fargo`s admission of wrongdoing; Continued cooperation in investigations; previous comparisons in a series of regulatory and civil lawsuits; and corrective action, including significant changes in Wells Fargo`s management and board of directors, an enhanced compliance program, and significant work to identify and compensate potentially victimized customers. The deferred court agreement is valid for a three-year term. The civil settlement agreement was the result of coordinated cooperation between the Civil Division`s commercial management arm and the Los Angeles United Bank District Attorney`s Office. The criminal investigation into fake bank data and identity theft is closed by a deferred law enforcement agreement in which Wells Fargo will not be prosecuted for the three years of the agreement, if it complies with certain conditions, including continued cooperation with other government investigations.