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Wells Fargo terminates employees over potential COVID-19 relief fraud

Lucas Manfredi
·1 min read

Wells Fargo has fired more than 100 employees who may have improperly received coronavirus relief funds, according to an internal memo reviewed by FOX Business on Wednesday.

WELLS FARGO OVERCOMES PANDEMIC, FAKE-ACCOUNT FALLOUT IN RETURN TO PROFITABILITY

The memo noted that the company identified workers who are believed to have defrauded the Small Business Admistration by making "false representations in applying for coronavirus relief funds for themselves.”

The abuse was tied to the Economic Injury Disaster Loan program and was outside of the employees’ roles at the bank.

“We have terminated the employment of those individuals and will cooperate fully with law enforcement,” David Galloreese, Wells Fargo’s head of human resources, said in the memo. "We have zero tolerance for fraudulent behavior and will continue to look into these matters. If we identify additional wrongdoing by employees, we will take appropriate action."

Galloreese added that the incident is "not representative of the high integrity of the vast majority of Wells Fargo employees."

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Wells Fargo’s action follows a similar investigation launched by JPMorgan Chase last month.

In addition, a group of small business owners filed lawsuits against some of the nation's biggest banks in mid-April, including Wells Fargo and JPMorgan, accusing them of reshuffling applications to frontload businesses seeking higher loans, thereby boosting their own profits.

Wells Fargo stock closed at $23.25 per share at the end of Wednesday's trading session, down roughly 6 percent.

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