Wells Fargo to pay $37 million in foreign-exchange fraud case

Wells Fargo on Monday reached a $37.3 million settlement to resolve US authorities accusations that it fraudulently overcharged hundreds of commercial customers who used its international alternate companies.

The settlement filed with the US District Courtroom in Manhattan requires a choose’s approval, and resolves civil fraud prices towards the fourth-largest US financial institution.

Wells Fargo didn’t instantly reply to requests for remark. In afternoon buying and selling, the financial institution’s shares have been down 2.1 p.c at $46.91.

The San Francisco-based financial institution has been dogged for the final 5 years by a series of scandals

over its treatment of customers, and has been subjected since 2018 to a federal cap on asset development till it improves its operations and oversight.

Based on courtroom papers, Wells Fargo defrauded 771 prospects between 2010 and 2017 by systematically charging increased spreads or gross sales margins on international alternate transactions than it promised, and offering monetary incentives to salespeople for the overcharges.

Source link