The Labor Department on Thursday ordered Wells Fargo to pay $22 million in back wages and compensatory damages for violating whistleblower protection rules by improperly terminating a former senior manager.
Labor's Occupational Safety and Health Administration found Wells Fargo violated the whistleblower protection provisions of the Sarbanes-Oxley Act when it terminated a Chicago area-based senior manager in the company's commercial banking segment.
The San Francisco-based bank was ordered to pay the employee more than $22 million, which includes back wages, interest, lost bonuses and benefits, front pay and compensatory damages.
The senior manager had repeatedly voiced concerns to area managers and the corporate ethics line regarding conduct that violated relevant financial laws, including wire fraud, according to Labor.
The manager — who was fired in 2019 — "expressed concerns that they were directed to falsify customer information and alleged that management was engaged in price fixing and interest rate collusion through exclusive dealing," Labor said.
Wells Fargo initially failed to provide a reason for terminating the manager, but later stated the manager was terminated as part of a restructuring process.
