1) -During the Great Recession Wells Fargo targeted black people and convinced them to take out subprime loans. Such actions lead to the result of Wells Fargo being sued in 2010 for discrimination and a year later settling the suit paying more than 174 million.
As all this came to fruition, the bank was penalized with $185 million dollars in fines and other penalties by county and federal organizations (Blake, 2016). On top of getting slapped with millions of dollars worth of fines, Wells Fargo fired 5,300 employees that may have been involved in the scandal (Blake, 2016). Some of Wells Fargo’s top executives where asked to step down in court proceedings as well as in other meetings with federal agencies. There have also been several lawsuits filed against Wells Fargo by customers and former employees of the company that feel that they were wronged and bombarded with threats. Thankfully, this scandal did not affect most of Wells Fargo’s clients. However, there were some unfortunate people that had
During the late 90’s and early 2000’s, several key companies in the United States were exposed for fraudulent reporting profits
Well just one I know of and that is Wells Fargo. A civil law suit was filed by the attorney for the City of Los Angeles. The suit was filed and accuses Well Fargo of unethically treating its employees and customers. The suit claims the Bank of setting nearly impossible sales goals for its employees. Which enticed them to use fraudulent ways for meeting the big goals. There have been several former and even present Wells Fargo employees that have come forward to tell their experience of the huge pressure from the bank. The employees used unethical fraudulent means to achieve these nearly impossible sales goals. They did this by opening unauthorized customer accounts, giving out illegal credit cards with lines of credit. They even went as far
While the organization blatantly made mediocre managerial decisions, such decisions merely reflect the competitive business environment the financial services industry has grown accustomed to. When it comes down to it, the employees of Wells Fargo did what most individuals would do when faced with the terrifying reality of potential unemployment. In the fast paced, money driven, cut throat environment that is known as twenty first century Corporate America, the lines often blur in terms of ethical decision making. Wells Fargo deserves to receive the blame in this situation in order to demonstrate that the big business taking advantage of the individual is intolerable and that the consumer demands a change. Modification of organizational behavior,
This is a cautionary tale of how corporate crime can cause severe harm. The shareholders were prevented by those perpetuating the fraud from selling while the stock was falling, while at the same time they moved their money out of the company. The final outcome was that the perpetrators being Jeff Schilling CEO, Ken Lay, and chief financial officer Andrew Fastow each received hefty sentences. According to CNN, Skilling was originally sentenced to 24 years, the longest sentence of any Enron perpetrator, and has been incarcerated in the federal prison system since his 2006 conviction. He had been facing a release date of Feb. 21, 2028,” (Smith). Ken Lay died before he could be sentenced and Andrew Fastow was released early as a result of a plea
When it comes to the Ethical Decision Model, it does not just pertain to the employees who opened these accounts but also leadership who either failed to realize what was going on or decided to sweep it under the rug by just covertly firing some employees. Wells Fargo did take the first step in recognizing the problem but failed to define it, which explains why these unethical behaviors continued for so many years. When the corporation was initially aware of what was going on, they should have acted immediately and strategized a solution that would dilute the possibility of it occurring again. Instead of defining the problem, which would have foster, a proper solution but company decided to just terminate
Summary judgment is appropriate when the moving party can show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. Cecil v. Cardinal Drilling Co., 244 Mont. 405, 409, 797 P.2d 232, 234 (1990); Mont. R. Civ. P. 56(c). A material fact involves the elements of the cause of action or defenses at issue to an extent that necessitates resolution of the issue by a trier of fact. Arnold v. Yellowstone Mountain Club, LLC, 2004 MT 284, ¶ 15, 323 Mont. 295, 100 P.3d 137. The moving party has the initial burden of proving no genuine issue of fact. Once this is met, the burden shifts to the opposing party to present material evidence that is not “mere conclusory or speculative,”
BWO will likely be able to prove that Chigurh was terminated for a legitimate business reason either because he held a management position or for the financial factors associated with fulfilling the agreement with Wells.
In this research paper, I will be examining the cases of failed plans of burglary, pertaining to U.S. President Nixon, known as the Watergate scandal. In my essay, I will dive in and analyze the time and place of which events occurred. The theme here is to find where the plan went astray and how it backfired. I aim to condense and simplify the objective of the plans to make the essay more digestible to readers. Be aware that the times I tend to scrutinize will be carefully analyzed in the form of steps.
Let’s talk about your corporate checking account. The Uniform Commercial Code (UCC) is a nationwide law that regulates how banks handle negotiable instruments, such as checks. In Massachusetts, Articles 3 and 4 of the UCC address check fraud specify how losses from forged checks should be allocated. According to the UCC, a bank can charge items against a customer’s account only if they are properly payable and the check is signed by an authorized individual [MGL 106, UCC 3-401(a) and 4-401(a)]. According to your bank’s deposit account agreement both of you have been designated as the only authorized signors on the account. I think it’s safe to say that since Jane forged your signatures on several checks, those checks were not properly authorized. From what I understand all the checks were payable to Don with the exception one which was payable to “cash” and given to the church. The UCC views the check payable to “cash” as a bearer instrument. What this means is that since the church had possession of the check they
It would seem the government did not fail to prosecute the executives responsible for the mortgage fiasco. “The Justice Department has an ethical obligation not to bring cases unless they have a better than 50% chance to convict. They argued the merits of each case and always came up short of the evidence necessary for a successful conviction. Greed is not a crime.” (Henning, 2015) The Assistant attorney general Lanny Breuer was not confident in his ability to prove criminal intent and therefore has not filed charges. Criminal intent is “the intent to commit a crime: malice, as evidenced by a criminal act; an intent to deprive or defraud the true owner of his property.” (Law Dictionary) Breuer did not believe any criminal activity took
The company we know today as Wells Fargo began its’ long history in March of 1852 in New York City when Henry Wells and William G. Fargo joined with several other investors to start a shipping company. This was not the first time these two had worked together, however, or the first shipping company that these two men had been founders of. They were both pioneers in the Express industry and used these skill to open their own shipping and banking business.
Many of the people affected were voicing their complaints on social media. Some of these include, “Three hours with no information. No details. Meanwhile we all have negative balances in our account because YOU took OUR MONEY.”, “...Wells Fargo is a joke. I have lost all faith in this
The SEC was proactive in the sense that it allows for tips to be sent in, but they did not take fully investigate the tips sent in. One could argue that there was no point in the whistleblowing system if one is not going to investigate the tips sent in. Another thing to note is the psychological effects of being a whistleblower on Harry Markopolos. In order for a whistleblowing system to be effective, the system should contain anonymity, the possibility of reporting to an independent party, provide any means to make the report, and a follow-up. The SEC failed in the follow-up. The anonymity, in Markopolos view, was also failing. He believed that his tips were ignored because someone within the SEC was associated with the fraud, so they were able to sweep the tip under the rug. This also led to Markopolos feeling paranoid that there might be an attempt on his life. An individual will not want to report any fraud or other misconduct if they believe there will be any type of repercussions.