Wells Fargo to pay $65 million for misleading investors regarding its cross-sell strategy

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In early 2011, the bank’s Board of Directors received reports regarding increasing allegations of misconduct related to its cross-sell strategy. During a Congressional hearing, Wells Fargo’s former CEO admitted that he became aware of the problem in 2013. However, the bank failed to disclose the widespread fraud to investors. When it was disclosed to the public, investors lost millions of dollars.

New York Attorney General will continue its investigations of Wells Fargo

In a statement Monday, Attorney General Barbara Underwood said, they found a widespread misconduct at every level of management across Well Fargo.

Additionally, Underwood emphasized, “State securities laws are vital to protecting the hard-earned savings of working families and Main Street investors from financial fraud.” She also stressed that her office will continue to “protect the public and the integrity of our markets.”

The Attorney General’s office said the settlement agreement does not affect its ongoing and other pending investigations of Well Fargo. It will continue its probe into the bank’s illegal business practices of opening millions of unauthorized accounts and enrolling customers in services without their consent.