Wells Fargo will pay $3 billion in criminal and civil settlements with the Justice Department and the Securities and Exchange Commission over its fraudulent fake-account scandal, the U.S. Attorney’s Office mentioned Friday.

“This case illustrates a complete failure of leadership at multiple levels within the bank,” mentioned U.S. Attorney Nick Hanna. “Simply put, Wells Fargo traded its hard-earned reputation for short-term profits, and harmed untold numbers of customers along the way.”

As a part of the agreements, Wells Fargo admitted it collected hundreds of thousands of {dollars} in charges and curiosity that it shouldn’t have collected, harmed the credit score scores of shoppers, and unlawfully misused clients’ delicate private data.

Wells Fargo struck a three-year deferred prosecution settlement in settling a criminal investigation into false financial institution information and identification theft. It is not going to be prosecuted if it abides with phrases of the settlement, together with persevering with to cooperate with ongoing investigations.

Wells Fargo’s $3 billion fee features a $500 million civil penalty to be distributed by the SEC to traders.

The settlement represents the newest authorities penalties for Wells Fargo and its former administration for malfeasance in which hundreds of thousands of pretend accounts had been arrange to meet sales quotas. They included checking and financial savings accounts, credit score and debit playing cards and invoice pay providers. These practices went on for over a decade, Hanna mentioned.

Last month, the Office of the Comptroller of the Currency mentioned that former Wells Fargo CEO John Stumpf, who managed the corporate in the course of the peak of the scandal, has been barred from working at a financial institution once more and that he’ll pay $17.5 million for his position.

“We are hopeful that this $3 billion penalty, along with the personnel and structural changes at the bank, will ensure that such conduct will not reoccur,” Hanna mentioned.

San Francisco-based Wells Fargo has remained entrenched in regulatory oversight since 2016 after revelations of fraud at its consumer-facing neighborhood financial institution. Wells got here below intense scrutiny on the time, when the Consumer Finance Protection Bureau and different authorities our bodies fined the corporate for fabricating hundreds of thousands of phony accounts to meet sales quotas.

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