Wells Fargo Bank said Monday it has reached an agreement with the Department of Labor to pay over $145 million to various parties.
The bank agreed to the settlement after the Department of Labor accused Wells Fargo and GreatBanc Trust Company of making 401(k) plans “pay more for stock than it would be worth when deposited in participants’ accounts” from 2013 to 2018.
“The Company strongly disagrees with the DOL’s allegations and believes it followed applicable laws in conducting the transactions. Though the Company disagrees with the DOL’s allegations and has not conducted these transactions since 2018, Wells Fargo believes resolving this legacy matter is in the best interest of the Company,” Wells Fargo said in a press release announcing the agreement.
RECESSION AHEAD? FOUR TRADITIONAL INDICATORS — AND FOUR WEIRD ONES
Labor Secretary Marty Walsh touted the agreement and recovery of funds for retirement plans in a statement Monday.
“Our investigation found those responsible for Wells Fargo’s 401(k) plan paid more than fair market value for employer stock and, by doing so, betrayed the trust of the plan’s current and future retirees,” Walsh said. “Today’s settlement shows the Department of Labor will act when we find retirement assets are misused and benefit plans suffer.”
With the settlement, Wells Fargo will pay $131.8 million to those whose retirement plans were affected by the alleged actions and a $13.2 million penalty to the Department of Labor.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Earlier this year, the bank was under scrutiny after former employees alleged Wells Fargo held “fake interviews” with minority candidates. The bank told the Washington Examiner in May the company “could not corroborate the claims as factual” but would conduct an internal investigation.
The matter is also under investigation by the federal prosecutors in New York, according to a report.
