Wells Fargo Fires More Than 100 Employees Accused Of Coronavirus Relief Fraud

Wells Fargo has fired more than 100 staff members whom it says personally defrauded a pandemic relief program from the Small company Administration.

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Wells Fargo has fired more than 100 employees whom it states personally defrauded a pandemic relief program from the Small Business Administration.

Scott Olson/Getty Images

Wells Fargo has fired more than 100 workers, saying they personally defrauded a coronavirus relief program from the U.S. Small Business Administration.

In a memo sent Wednesday and gotten by NPR, the company said it had identified staff members that it believes made incorrect representations in making an application for relief funds through the SBAs Economic Injury Disaster Loan program.

The SBAs Economic Injury Disaster Loan program offered advances of up to $10,000 that did not require to be paid back.

“We have no tolerance for fraudulent behavior and will continue to check out these matters. If we recognize extra misbehavior by workers, we will take suitable action,” he added.

The number of workers who have been fired is between 100 and 125, a Wells Fargo staff member with understanding of the circumstance told NPR. Wells Fargo initiated the investigation and took action when the scams was identified, the staff member said. The examination is ongoing.

“We have actually terminated the work of those individuals and will cooperate completely with law enforcement. These wrongful actions were personal actions, and do not include our clients,” composed David Galloreese, head of personnels at Wells Fargo.

Wells Fargo isnt the first bank to discover obvious abuse of government programs amongst its staff. Last month, JPMorgan Chase found that more than 500 of its workers had gotten assistance from pandemic relief programs, including lots said to have done so incorrectly, Bloomberg reported.

The staff members actions were beyond their work obligations, the company stated.

The abuse of such programs is definitely not limited to workers at banks, however unlike other companies, banks are able to see whether relief funds have actually been transferred into their employees accounts, as Bloomberg reported. The SBA has actually encouraged banks to look for suspicious deposits from the catastrophe loan program, whether among consumers or personnel.

In July, the SBAs inspector general issued a memo flagging “major issues” of possible scams in the program. An evaluation of the programs initial disaster response identified $250 million in loans and advance grants provided to potentially ineligible recipients, and $45.6 million in possibly replicate payments.

In August, Bloomberg Businessweek examined SBA information and discovered at least $1 billion in suspicious payments.