Post by robeiae on Dec 12, 2016 14:00:26 GMT -5
So, it looks like Wells Fargo employees were also writing phony life insurance contracts for customers, in order to meet quarterly goals: money.cnn.com/2016/12/12/investing/wells-fargo-insurance-scandal-prudential/index.html
I wonder if Warren Buffet will keep defending Wells Fargo...
The lawsuit notes that some Prudential insurance products owned by Wells Fargo customers listed obviously-fake home addresses on their applications like "Wells Fargo Drive" or phony email addresses such as "noemail@wellsfargo.com."
More alarming, the insurance premium payments may have come from dormant Wells Fargo accounts.
The three former Prudential (PRU) employees filed a Dodd-Frank whistleblower complaint with the SEC on Saturday alleging they were retaliated against after uncovering the misconduct. The employees were members of Prudential's investigations division and had been tasked with reviewing the insurer's relationship with Wells Fargo following the fake account scandal that emerged in September.
The employees say their review into the insurer's Wells Fargo relationship turned up a number of red flags. They found a 70% lapse rate for MyTerm policies sold in 2014 (the first year they were sold in Wells Fargo); a spike in sales near the end of each quarter; policies were sold "predominately to individuals with Hispanic sounding last names."
More alarming, the insurance premium payments may have come from dormant Wells Fargo accounts.
The three former Prudential (PRU) employees filed a Dodd-Frank whistleblower complaint with the SEC on Saturday alleging they were retaliated against after uncovering the misconduct. The employees were members of Prudential's investigations division and had been tasked with reviewing the insurer's relationship with Wells Fargo following the fake account scandal that emerged in September.
The employees say their review into the insurer's Wells Fargo relationship turned up a number of red flags. They found a 70% lapse rate for MyTerm policies sold in 2014 (the first year they were sold in Wells Fargo); a spike in sales near the end of each quarter; policies were sold "predominately to individuals with Hispanic sounding last names."