Wells Fargo 'misled' investors about toxic sales culture, NY Attorney General says

New York (CNN) New York authorities condemned Wells Fargo on Monday and made not to inform the investor about any harmful sales culture that gave birth to a bank's fake account scandal

Attorney General Barbara Underwood of New York State condemns Mr. Wells Fargo 's business model and infamous sales strategy for many years issuing "fraudulent" statements to shareholders.

Underwood said in a statement, "Wellbank's cheating is common among banks and management at all levels - it affects misguided customers and investors."

For years, Wells Fargo has been proud of the ability to sell various products to customers, an industry known as "cross selling". Banks often point out the success of this sales in the earnings report as a means of increasing revenue and maintaining customers.

However, the underwood office accused Wells Fargo not disclosing it to investors that the ability of cross-selling is "based on misbehavior of sales."

The bank acknowledged that unrealistic sales targets led employees to open 5 million fake bank accounts and credit card accounts without customer's knowledge. Workers at Wells Fargo are faced with cruel pressure to achieve sales targets and receive bonuses and promotions as they achieve

Wells Fargo shareholders lost funds when the stock price fell, after the wrong account scandal. The wave of legal conflict shocked Wells Fargo's interests and hurt its reputation.

The settlement agreement in New York said that Wells Fargo failed to remind investors "systematic problems" in its sales strategy. Former Wells Fargo CEO John Staplef told Congress he realized that fraud is spreading to employees in 2013. Wells Fargo 's Board of Directors received a report on the increase in allegations as early as 2011.

New York officials pointed out in a June 2011 e-mail that members of the bank's incentive compensation team acknowledged misconduct. "I asked a banker, why do people cheat, because if they do not meet the minimum requirements, they are told by their boss that they will be dismissed," e-mail says.

Wells Fargo emphasized a statement that he does not recognize responsibility. "I am convinced that putting this problem behind us is the greatest benefit for all our stakeholders, including our customers," the bank said earlier that funds to pay the settlement fee It secured.

Wells Fargo emphasized that the settlement claims are related to the product sales goals canceled in 2016. "We are still concentrating on turning Wells Fargo into a better company for our customers and other stakeholders," the company said.

But Wells Fargo is not getting out of trouble with New York regulatory authorities. Said that underwood's office continues to investigate Wells Fargo's "illegal business practice" involving inviting customers unknowingly. Wells Fargo told thousands of customers to charge unnecessary car insurance. Banks also refunded to customers who are not fully understood about pet insurance and other products.

Underwood is committed to keeping working families and investors from monetary fraud by using the Martin Act which gives the authorities enormous enforcement power.

In May this year Wells Fargo agreed to pay $ 480 million to settle the investor-raised class action litigation securities fraud case.

Wells Fargo currently faces numerous ongoing investigations by various authorities, including criminal investigation by the Department of Justice and California Attorney General. According to the first search warrant issued by the Los Angeles Times, the latter can not only request the identity of Wells Fargo's employees but also "use illegally obtained forgery and identity theft". And regional manager. "

The settlement agreement in New York said that Wells Fargo failed to remind investors "systematic problems" in its sales strategy. Former Wells Fargo CEO John Staplef told Congress he realized that fraud is spreading to employees in 2013. Wells Fargo 's Board of Directors received a report of an increase in allegations as early as 2011. But Wells Fargo did not leave the forest. New York's regulatory official Underwood said that he continues to investigate Wells Fargo's "illegal business practice" involving inviting customers unknowingly. Wells Fargo told thousands of customers to charge unnecessary car insurance. Banks also refunded to customers who are not fully understood about pet insurance and other products.