Wells Fargo to pay $37 million in foreign-exchange fraud case

Wells Fargo on Monday reached a $37.3 million settlement to resolve US authorities accusations that it fraudulently overcharged tons of of business clients who used its international alternate providers.

The settlement filed with the US District Court docket in Manhattan requires a decide’s approval, and resolves civil fraud costs in opposition to the fourth-largest US financial institution.

Wells Fargo didn’t instantly reply to requests for remark. In afternoon buying and selling, the financial institution’s shares have been down 2.1 p.c at $46.91.

The San Francisco-based financial institution has been dogged for the final 5 years by a sequence of scandals over its therapy of shoppers, and has been subjected since 2018 to a federal cap on asset progress till it improves its operations and oversight.

In keeping with court docket papers, Wells Fargo defrauded 771 clients between 2010 and 2017 by systematically charging larger spreads or gross sales margins on international alternate transactions than it promised, and offering monetary incentives to salespeople for the overcharges.

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