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What's going on over at WF?? 100 fired for COVID fraud

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Frequent Contributor

What's going on over at WF?? 100 fired for COVID fraud

I wonder how many legitimate companies were declined by WF or these same individuals who scammed the program.

 

https://www.bloomberg.com/news/articles/2020-10-14/wells-fargo-fires-more-than-100-workers-over-reli...

 

Wells Fargo & Co. fired more than 100 employees suspected of improperly collecting coronavirus relief funds, according to a person with knowledge of the situation....

 

The firm determined that the staffers defrauded the Small Business Administration “by making false representations in applying for coronavirus relief funds for themselves,” according to an internal memo reviewed by Bloomberg. The review focused on employees who tapped the Economic Injury Disaster Loan program, a key part of the government’s effort to prop up businesses during the pandemic....

 

An earlier review by JPMorgan Chase & Co. found that more than 500 employees tapped the EIDL program, and that dozens did so improperly.

 

 

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Community Leader
Valued Contributor

Re: What's going on over at WF?? 100 fired for COVID fraud

This is an illegal and unethical act relating to individuals. This is not the fault of lenders, other than stricter internal security enhancements needed. Chase dismissed personnel for the same fraudulent acts.

Your title doesn't jive with the actual issue.

Message 2 of 11
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Moderator

Re: What's going on over at WF?? 100 fired for COVID fraud

It's unfortunate, but with as many people employed by WF and Chase as there are, that's a relatively small number of bad apples and doesn't seem to necessarily reflect on the companies themselves.

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Senior Contributor

Re: What's going on over at WF?? 100 fired for COVID fraud

This type of behavior seems to be the norm anything something like this happensm there's never shortage of vultures. And frankly it wouldn't surprise me if WF was directly involed or behind this considering the other shady things they've done. 

 

There seems to be no line in the sand that people wouldn't cross in the name of greed.






Message 4 of 11
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Frequent Contributor

Re: What's going on over at WF?? 100 fired for COVID fraud

While Wells Fargo certainly has a history of doing some shady stuff, I do agree with the others that this particular case doesn't entirely fall on Wells Fargo.  I wonder how many other banks will report employees that did shady stuff with the SBA relief loans, I am sure it was pretty rampant. Sadly anytime the government tries to do good stuff bad actors take adantage of it, and it leads people to think the government shouldn't offer these kinds of stimulas and loans. 





Message 5 of 11
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Moderator

Re: What's going on over at WF?? 100 fired for COVID fraud


@Janus wrote:

...And frankly it wouldn't surprise me if WF was directly involed or behind this considering the other shady things they've done...

 


It would surprise me a great deal since the article is based on an internal memo and WF terminated their employment.  This was not fraud uncovered by the SBA or another agency, but WF themselves.  Since the fiasco of unauthorized account openings, WF is under a huge microscope.

Message 6 of 11
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Super Contributor

Re: What's going on over at WF?? 100 fired for COVID fraud

A lot of the problem is that these people don't get punishments that really deter the behavior. Stop sending them to Club Fed. Once their buddies start hearing about what it's like in gen pop in a regular prison, they'll think twice. 




Message 7 of 11
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Frequent Contributor

Re: What's going on over at WF?? 100 fired for COVID fraud

Money, Money - many have it, many want it.  All greed.  I do not think that the Institutions can control this.

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Moderator Emeritus

Re: What's going on over at WF?? 100 fired for COVID fraud


@Janus wrote:

This type of behavior seems to be the norm anything something like this happensm there's never shortage of vultures. And frankly it wouldn't surprise me if WF was directly involed or behind this considering the other shady things they've done. 

 

There seems to be no line in the sand that people wouldn't cross in the name of greed.


Humans kind of suck frankly.  

 

So two things that I've learned over the course of my career:

 

In excess of 80% of security related incidents were caused by internal individuals, not by external, though this is probably changing with the rise of phishing and other attacks.

 

Secondly, in EVERY single financial institution I've worked for, this has been a thing.  Every single one, and in some of them frequent.  Saw more than one person walked out in handcuffs not just fired from one place.

 

That's that old saw of "Would you sleep with me for three million dollars?" and probably (safety first of course) most if not otherwise in a committed relationship would say yes... and the next question of course "would you sleep with me for $1" and the answer is "of course not!" and then the punch line of course is hey we're just negotiating now.

 

Ultimately most people have a line, I suspect pretty much all of you do too.  If I could walk away clean to a non-extradition country with $10 million in hand without thinking that the bill almost assuredly will be passed on to others just like me?  If I weren't quite so empathetic, or if I didn't my own financial life well in hand at this point, I'd at least think twice about it.

 

I'm probably way towards the "too empathetic" side if I'm being honest, and quite possibly the majority of people are more sociopathic than I am, and as such there's probably a line where that amount of money if they thought they could get away with it, would do so.  Unfortunately the line for many would probably be some tiny fraction of the number I would even consider being possibly worthwhile, and for the record this sort of thing taking COVID relief payments or whatever, wrong wrong wrong in my book.

 




        
Message 9 of 11
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Established Member

Re: What's going on over at WF?? 100 fired for COVID fraud

except how wells fargo is repeatedly in trouble for unethical behavior...

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