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U.S. Department of Labor | July 21, 2017
SAN FRANCISCO –
The U.S. Department of Labor has ordered Wells Fargo to reinstate and pay $577,500
in back wages, damages and other fees to a former branch manager in Pomona who
was terminated after she reported conduct
by at least three “private bankers” working under her that she reasonably
believed to be bank, wire and mail fraud.
Investigators with the department’s Occupational Safety and Health
Administration found that Wells Fargo terminated the employee turned
whistleblower in September 2011 because of concerns raised that the bank’s private
bankers were opening customer accounts and enrolling customers in bank products
without their knowledge, consent or appropriate disclosures. OSHA also found
Wells Fargo fired the branch manager for reporting violations of one or more of
the enumerated consumer financial laws implemented and enforced by the Consumer Financial Protection Bureau. The former branch manager’s reports to Wells
Fargo Bank were determined to be protected under the Sarbanes-Oxley
Act and the Consumer Financial
Protection Act of 2010, and were determined to be at least a
contributing factor in her termination.
“No banking industry employee should fear retaliation for
raising concerns about fraud and practices that violate consumer financial
protections,” said Barbara Goto, OSHA regional administrator in San Francisco.
“The U.S. Department of Labor will fully and fairly enforce the whistleblower
protection laws under its jurisdiction.”
In addition to reinstating the employee and clearing her
personnel file, OSHA ordered Wells Fargo to fully compensate her for back pay,
compensatory damages and attorneys’ fees – calculated at greater than $577,500. Wells Fargo also must post a notice informing
employees of their whistleblower protections under the Sarbanes-Oxley and Consumer
Financial Protection acts.
The order may be appealed to the department’s Office of Administrative Law Judges,
but an appeal does not stay the preliminary reinstatement order.
OSHA enforces the whistleblower
protection provisions of the Sarbanes-Oxley and Consumer Financial Protection acts
and 20 other statutes protecting employees who report violations of occupational
safety and health, airline, commercial motor vehicle, consumer product,
environmental, food safety, health care reform, nuclear, pipeline, public
transportation agency, railroad and maritime laws. More information is available at www.whistleblowers.gov.
Under the Occupational Safety and
Health Act of 1970, employers are responsible for providing safe and healthful
workplaces for their employees. OSHA’s
role is to ensure these conditions for America’s working men and women by
setting and enforcing standards, and providing training, education and
assistance. For more information, visit http://www.osha.gov.
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Editor’s note: The U.S.
Department of Labor does not release names of employees involved in
whistleblower
complaints.
Media Contacts:
Leo F. Kay, 415-625-2630, kay.leo.f@dol.gov
Jose A. Carnevali, 415-625-2631, carnevali.jose@dol.gov
Release Number: 17-970-SAN
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