Henry Wells and William Fargo started Wells Fargo (NYSE:WFC) in the year 1852. It has been over a century and the company has maintained its reputation and name in providing its customers with financial services 24/7. Wells Fargo (NYSE:WFC) is now an organization that has offices all over America including prime cities like New York, New Jersey, and Chicago, California, as well as Nebraska.
The company has grown leaps and bounds over the passage of time, increasing its services and quality with each passing year. However like all other fast growing organizations, it too has faced minor glitches. The most recent was a fine of $5 million to be paid by Wells Fargo (NYSE:WFC). This amount was paid as a result of the charges laid by Securities and Exchange Commission at Wells and Fargo’s feet for not being able to maintain proper business decorum. According to the charge, the organization failed to stop its worker from trading using client’s confidential data.
Wells Fargo (NYSE:WFC) & Co. did not resist or deny the charges and the administration accepted its fault. Other than that during the SEC’s investigation procedure, the unit also failed to provide the required documentation within the time span provided by the Commission. The SEC clearly mentioned in its official statement on Monday, that not only the records acquirement was deferred but also evidently distorted and tampered with.
The biggest scam recorded by the SEC – which was also stated in their inquiry report – was with the Burger King Holdings. Wells Fargo (NYSE:WFC) found out from a classified source that Burger King’s assets were being purchased by some private New York equity group. Wells Fargo (NYSE:WFC) utilized this information and made dealings based on it before the actual transaction could be made.
According to a few reports made back in the year 2012, SEC had filed another such case against the well renowned Wells Fargo (NYSE:WFC). In that particular circumstance, one of their employee, Waldyr Da Silva Prado Neto, took the same advantage by acquiring the holdings of Burger King before 36 Capital Partners Limited. Pedro was found guilty with evidence and was punished by the federal court.
Wells and Fargo (NYSE:WFC) are not ready to admit to any previous allegations. According to the agency’s official statement, this is the first time that the organization has undergone an investigation headed by the SEC. Wells Fargo (NYSE:WFC) also states that this is the first time that the company has been found guilty and charged. When the media wanted to find out the truth about the previous reports, the spokesperson for the Wells and Fargo (NYSE:WFC) refused to answer any questions. He clearly declined all prior accusations the company had been charged with.
The main headquarters of the famous Wells Fargo (NYSE:WFC) is situated in the heart of San Francisco. The other divisions located on the Eastern Coast are based in Charlotte. It is here that the company’s employee concentration increases. Maximum numbers of employees have been hired in this division; thus making it more prone to faults and mistakes.