Two former Wells Fargo & Co (WFC.N) employees have filed a class action in California seeking $2.6 billion or more for workers who tried to meet aggressive sales quotas without engaging in fraud and were later demoted, forced to resign or fired.
The lawsuit on behalf of people who worked for Wells Fargo in California over the past 10 years, including current employees, focuses on those who followed the rules and were penalized for not meeting sales quotas.
“Wells Fargo fired or demoted employees who failed to meet unrealistic quotas while at the same time providing promotions to employees who met these quotas by opening fraudulent accounts,” the lawsuit filed on Thursday in California Superior Court in Los Angeles County said.
Wells Fargo has fired some 5,300 employees for opening as many as 2 million accounts in customers’ names without their authorization. On Sept. 8, a federal regulator and Los Angeles prosecutor announced a $190 million settlement with Wells.
The revelations are a severe hit to Wells Fargo’s reputation. During the financial crisis, the bank trumpeted being a conservative bank in contrast with its rivals.
A Wells Fargo spokesman on Saturday declined to comment on the lawsuit.
The lawsuit accuses Wells Fargo of wrongful termination, unlawful business practices and failure to pay wages, overtime, and penalties under California law.
Former employees Alexander Polonsky and Brian Zaghi allege Wells Fargo managers pressed workers to meet quotas of 10 accounts per day, required progress reports several times daily and reprimanded workers who fell short.
Polonsky and Zaghi filed applications matching customer requests and were counseled, demoted and later terminated, the lawsuit said.
While executives at the top benefited from the activity, the blame landed on thousands of $12-per-hour employees who tried to meet the quotas and were often required to work off the clock to do so, the lawsuit said.
Employees with a conscience who tried to meet quotas without engaging in fraud were the biggest victims, losing wages, benefits and suffering anxiety, humiliation and embarrassment, the lawsuit said.
Wells Fargo was aware many accounts were illegally opened, unwanted, carried a zero balance, or were simply a result of unethical business practices, the lawsuit said.
“Wells Fargo knew that their unreasonable quotas were driving these unethical behaviors that were used to fraudulently increase their stock price and benefit the CEO at the expense of the low level employees,” the lawsuit said.
http://www.reuters.com/article/us-wells-fargo-accounts-lawsuit-idUSKCN11U0NY
(Hypothetically overheard at a recent Wells Fargo board meeting) “As Wells Fargo employees, we expect you to F’ people over at every opportunity. The better you screw ’em over to enrich our wallets, the higher up the corporate ladder you will go.”
“If any mercy or honesty is detected, immediate termination will result.”
“Ooh, rah, rah! Wells Fargo, Wells Fargo, Wells Fargo.” “Hey Knuckles, open the vault and grab some booty for bribe money, we got some Feds to buy off.”
It’s headlines one day, until they discover the next disaster or fraud, then, when they get busted, another “false flag” happens to put their story on page 12. It’s a never ending circle jerk, self perpetuating, insidious, and, until we call ’em on it, they won’t stop. It’s one deception after another. They don’t give you time to digest it before they implode you with another headline, adding to the confusion and difficulty trying to understand what just happened.
They’ve “mastered the art of deception” and you better wake up to it or be devoured by it.