Wells Fargo pays $37 million to resolve Justice Department claims it defrauded currency customers

Charles Scharf, chief govt officer of Wells Fargo & Co., listens throughout a Home Monetary Companies Committee listening to in Washington, D.C., U.S., on Tuesday, March 10, 2020.

Andrew Harrer | Bloomberg | Getty Pictures

Wells Fargo paid $37 million to settle a authorities lawsuit accusing the financial institution of defrauding tons of of business prospects.

The financial institution allegedly overcharged 771 companies on foreign-exchange transactions from 2010 by way of 2017, in accordance with the U.S. Justice Division lawsuit filed Monday. Shares of the financial institution fell 1.4%.

The settlement is the most recent regulatory matter resolved beneath Wells Fargo CEO Charles Scharf, who was employed in 2019 to scrub up a litany of authorized woes that started with a 2016 pretend accounts scandal. Earlier this month, Wells Fargo was hit with a $250 million fine on the identical day it introduced the decision of a Shopper Monetary Safety Bureau consent order.

Wells Fargo instructed the industrial prospects that they have been being charged sure mounted charges, however then incentivized salespeople to “overcharge FX prospects,” in accordance with the swimsuit.

The financial institution then hid the overcharges from prospects and obtained “hundreds of thousands of {dollars} in FX income to which the financial institution was not entitled,” the swimsuit stated.

Many of the settlement, $35.3 million, goes as restitution to the overcharged prospects, the federal government stated. A whistleblower who kicked off the case in 2016, Paul J. Kohn, is about to obtain $1.6 million, the U.S. stated.

The financial institution did not instantly reply to emails looking for remark.

This story is creating. Please test again for updates.

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https://www.cnbc.com/2021/09/27/wells-fargo-pays-37-million-to-resolve-justice-department-claims-it-defrauded-currency-customers.html | Wells Fargo pays $37 million to resolve Justice Division claims it defrauded foreign money prospects


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