Last week, Democratic lawmakers amplified the Wells Fargo controversy by
taking aim at the senior executives who earned millions of dollars in
bonuses while employees of the bank allegedly created sham accounts in
an effort to meet their sales goals.
Lawmakers, including Senator Elizabeth Warren, are now calling for the
executives of the company to be held accountable. Wells Fargo fired roughly
5,300 employees due to misconduct during the period of the alleged scheme.
However, lawmakers believe that the leadership has escaped responsibility
for their actions.
The lawmakers are targeting Carrie Tolstedt, who served as the former head
of Community Bank (a unit of Wells Fargo) during the time of the alleged
scheme. The employees who were fired for misconduct all worked under the
Community Bank unit. During the time period, Tolstedt earned $20 million
in bonuses and in July, she announced her retirement, walking away with
roughly $125 million.
The bonuses were earned as a result of the alleged scheme that occurred
between 2010 and 2015. A spokesperson for Wells Fargo has declined to
discuss the executives’ pay or the letter issued by the lawmakers.
However, in an interview last week, John G. Stumpf, a Chief Executive
for Wells Fargo, announced that the company’s board would make the
decision regarding whether or not there would be “clawbacks,”
which would require the executives to return some of the money earned
on their bonuses.
Stumpf testified in front of a Senate panel this week, increasing the attention
and length of the debate, regardless of how Stumpf emerges from the scheduled
hearing. Now, the fake accounts are under review by federal prosecutors
with the House Financial Services Committee launching a separate investigation
and hearing regarding the fraud allegations.
The alleged scheme took five years to unfold and eventually resulted in
the company being fined $185 million.
Attorney Ahmad Sulaiman says,
“If a teller stole a $20 bill it would be theft and will serve jail
time but the CEO making hundreds of millions of dollars personally off
the criminal activity of his employees gets away with it by apologizing
and his company’s insurance policy paying a fine.”
At Sulaiman Law Group, LTD, we protect the rights of consumers who have
been harmed by fraud. We believe that dishonest companies should not profit
from their misconduct, nor should they be allowed to get away with violating
the rights of their customers. Our
Chicago consumer attorneys aim to protect those who have been wronged by corrupt corporations or
If you are in need of legal advocacy to help protect your rights as a consumer,
call our firm today and discuss your potential case with us.