Wells Fargo Fire employees applying for SBA pandemic loans

‘These wrongdoings were individual actions, and do not involve our customers.’ Wells Fargo’s HR head.


Andrew Seng for The Wall Street Journal

Wells fargo wfc -6.02%

& Company fired more than 100 employees for allegedly defrauding the federal epidemic-relief program.

A bank internal investigation found that 125 types of small employees misrepresented in applying for a type of small-business relief program, called an economic injury loan, said a person familiar with the matter.

“We have terminated the employment of those individuals and will fully cooperate in enforcing the law,” said David Galorese, bank head of human resources, in an internal memo. “These wrongdoings were individual actions, and do not involve our customers.”

The Small Business Administration Program is providing these loans directly to business owners who lose revenue due to the epidemic. The SBA inspector general said in July that it was stayed with complaints about fraud.

Financial institutions do not play a role in approving or rejecting loans but monitor their credit to customers’ accounts by the SBA. According to the Inspector General’s report, nine of them reported about $ 200 million in suspicious transactions.

Wells Fargo Farings, previously reported by Bloomberg News, follows an earlier revelation by JPMorgan Chase & Co. that it was investigating possible wrongdoings associated with another small business relief effort, the Paycheck Protection Program.

Write [email protected] on Ben Eisen

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Appeared on October 15, 2020, ‘Bank employees fired on SBI loan.’


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