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Features/Scandals

Wells Fargo Complaints Show Flaws In Federal Whistleblower Program

October 13, 2016

Former Wells Fargo general manager Claudia Ponce de Leon filed a whistleblower complaint in December 2011 with federal labor regulators, alleging she was fired for telling superiors about employees opening unauthorized accounts.  Nearly 5 years later, she has not been interviewed by OSHA investigators, according to you attorney.

 

Her complaint claiming retaliation by Wells Fargo for reporting potential misconduct is one of several dozens filed against the bank over the last 14 years, Reuters has found.  Their existence shows U.S. government regulators are still not meeting targets set by law - a problem that was also flagged in a critical internal report issued in September 2015.

 

As of Oct. 6, the Labor Department's Occupational Safety and Health Administration (OSHA) had yet to close out 34 of the 91 complaints it has received since fiscal year 2002 from Wells Fargo employees alleging they faced retaliation after reporting potential wrongdoing, according to department data obtained through a Reuters public records request. The department did not disclose details of the claims or the dates they were filed, and it remained unclear how many were related to the ongoing scandal involving Wells staffers opening as many as 2 million accounts without customer permission. It is also unclear how those 91 complaints against Wells Fargo compares with other corporations.

 

In late September, Reuters identified Ponce de Leon and at least 4 other former Wells Fargo employees who reported to OSHA between 2009 and 2014 that they were fired for raising concerns about the opening of unauthorized accounts and credit cards. Of the five OSHA complaints seen by Reuters, Ponce de Leon's case has been pending since December 2011, and another 2014 case was initially dismissed by an OSHA investigator on grounds that were later reversed on appeal by a Labor Department administrative law judge. The bank ultimately reached a settlement with the employee in 2015.  The 3 other complaints - one in 2009 and two in 2010 - were transferred to state and federal courts, respectively.