SAN FRANCISCO–Wells Fargo is back in the news again, and again for an alleged crime.
The bank has fired more than 100 employees suspected of improperly collecting coronavirus relief funds. According to Bloomberg, Wells Fargo found its employees had defrauded the Small Business Administration “by making false representations in applying for coronavirus relief funds for themselves,” according to an internal memo reviewed by the news outlet.
The review focused on employees who tapped the Economic Injury Disaster Loan program, Bloomberg said.
“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 quoted by Bloomberg. “These wrongful actions were personal actions, and do not involve our customers.”
While it’s possible for employees at large companies to legitimately tap U.S. aid for businesses they operate on the side, “Wells Fargo’s findings add to evidence the program was widely abused -- with little sign such activity was limited to bankers. Unlike other employers, banks can check whether staff had aid deposited into their accounts,” Bloomberg reported.
‘Dozens’ at JPMorgan Chase Also Accused
The news outlet cited an earlier review by JPMorgan Chase found more than 500 of its employees tapped the EIDL program, and that dozens did so improperly.
While the program offers loans to businesses, much of the concern has focused on its advances of as much as $10,000 that don’t have to be repaid. An earlier Bloomberg Businessweek analysis of SBA data in August identified at least $1.3 billion in suspicious payments.
The agency’s inspector general has since flagged evidence of fraud in the program, saying it identified more than $250 million in aid given to potentially ineligible recipients as well as $45.6 million in possibly duplicate payments, Bloomberg reported.
As for Wells Fargo, Galloreese added in his email that the bank “will continue to look into these matters. If we identify additional wrongdoing by employees, we will take appropriate action.”