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Wells Fargo terminates over 100 employees for abusing US COVID-19 aid

Author : Saipriya Iyer | Published Date : 2020-10-16 

Wells Fargo & Co., a renowned financial service firm, has reportedly fired over 100 employees that were suspected of collecting COVID-19 relief funds improperly, claims a source familiar with the matter. According to an internal memo, the company has determined that the said employees swindled the SBA (Small Business Administration) by essentially making untrue representations in applying for COVID-19 relief aid for themselves.

The review mainly focused on the employees that tapped into the EIDL (Economic Injury Disaster Loan program), an important part of the US government’s effort to help businesses recover and sustain in the pandemic.

David Galloreese, Head of Human Resources at Wells Fargo, stated that the company has fired the suspected employees and would fully cooperate with law enforcement for any legal proceedings. The misdoings were individual actions, and did not involve any Wells Fargo customers.

The firm will continue to keep an eye on these matters. If the company finds any additional wrongdoings by its employees, it will take the necessary actions, added Galloreese.

While it is possible for employees working in large corporations to tap into U.S. aid for any businesses they handle on the side, the company’s findings further add to the proof that the program was heavily exploited, with very little sign that the said activity was just limited to bankers.

As opposed to other enterprises; banks can verify if the staff had funds deposited in their accounts. A prior review by JPMorgan Chase & Co. showed that over 500 employees accessed the EIDL program, of which dozens of employees did so in an improper manner.

The SBA had urgently extended its EIDL program in early months of this year to provide small businesses with cash lifelines as lockdowns started to come into effect to tackle the COVID-19 pandemic. Since then, the inspector general of SBA has flagged proof of scam in the program, claiming that over $250 million in relief funds were granted to ineligible recipients and that duplicate payments worth approximately $45.6 million were made.

Source credit: https://www.bloomberg.com/news/articles/2020-10-14/wells-fargo-fires-more-than-100-workers-over-relief-fund-abuse

About Author

Saipriya Iyer

Saipriya Iyer

Saipriya Iyer presently works as a content developer for fractovia.org. Having dabbled with the domain of content creation for nearly half a decade, she now boasts of an enviable portfolio, holding substantial experience in penning down pieces related to technology, finance, and a wide spectrum of other industry verticals. A qualified computer engineering graduate from the University of Pune, Saipriya can often be found leveraging her knowledge of software technology and electronics in her write-ups. She can be contacted at- [email protected] | https://twitter.com/saipriya_i

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