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Violation Tracker Individual Record

Company: Wells Fargo Bank, National Association
Current Parent Company: Wells Fargo
Penalty: $1,200,000,000
Year: 2016
Date: April 8, 2016
Offense Group: government-contracting-related offenses
Primary Offense: False Claims Act and related
Secondary Offense: fraud
Mega-Scandal: Mortgage Abuses
Violation Description: The Department of Justice announced the settlement of civil mortgage fraud claims against Wells Fargo Bank, N.A. stemming from its participation in the Federal Housing Administration Direct Endorsement Lender Program. In the settlement, Wells Fargo agreed to pay $1.2 billion and admitted, acknowledged and accepted responsibility for, among other things, certifying to the Department of Housing and Urban Development, during the period from May 2001 through December 2008, that certain residential home mortgage loans were eligible for FHA insurance when in fact they were not, resulting in the government having to pay FHA insurance claims when some of those loans defaulted.
Level of Government: federal
Action Type: agency action
Agency: Justice Department Civil Division
Civil or Criminal Case: civil
HQ Country of Current Parent: USA
HQ State of Current Parent: California
Ownership Structure of Current Parent: publicly traded
Major Industry of Current Parent: financial services
Specific Industry of Current Parent: banking
Source of Data: (click here)
Source Notes: If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Current parent company note: Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.