The SEC determined that Wells Fargo violated the antifraud provisions of the Securities Exchange Act of 1934. In addition to paying the $500 million civil penalties, the company agreed to cease and desist from committing or causing any future violations of these provisions of the federal securities law.
Regulators have been holding Wells Fargo accountable for its wrongdoings
In a statement, SEC Division of Enforcement Co-Director Stephanie Avakian, said, “Wells Fargo repeatedly misled investors, including through a misleading performance metric, about what it claimed to be the cornerstone of its Community Bank business model and its ability to grow revenue and earnings. This settlement holds Wells Fargo responsible for its fraud and furthers the SEC’s goal of returning funds to harmed investors.”
In October 2018, Wells Fargo paid $65 million penalties to settle a lawsuit filed by New York State alleging that the company made fraudulent statements to investors regarding its cross-sell strategy.
