Wells Fargo has agreed to pay a substantial $35 million civil penalty as part of a settlement with the Securities and Exchange Commission (SEC). The charges were brought against Wells Fargo Clearing Services LLC and Wells Fargo Advisors Financial Network LLC for overcharging over 10,900 investment advisory accounts more than $26.8 million in fees. The SEC alleged that Wells Fargo and its predecessor firms overcharged certain clients who opened accounts prior to 2014 up until December 2022. The bank was also accused of failing to implement proper compliance policies to prevent overbilling. As part of the settlement, Wells Fargo will also reimburse affected account holders approximately $40 million. The bank has been accused of overcharging nearly 11,000 investment accounts by a total of $27 million over the past decade. This settlement comes as Wells Fargo has recently faced other financial penalties, including a fine imposed by the SEC for employees’ use of personal messaging apps for discussing business matters. Furthermore, the bank had to settle a class-action lawsuit with shareholders for $1 billion over illegal business practices. Since 2012, Wells Fargo has been under consent orders from multiple financial regulators to improve governance and oversight following instances of alleged fraud. The bank’s market value has plummeted by over $54 million in the past two years as a result of these wrongdoings becoming public.
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