American multinational financial services company Wells Fargo has terminated around 100 employees who falsely collected relief funds meant for small businesses affected by the Covid-19 crisis.
According to an internal memo obtained by Bloomberg on Monday, Wells Fargo said the staffers defrauded the U.S. Small Business Administration’s Economic Injury Disaster Loan program through “false representations” when they applied for the funds for themselves.
Wells Fargo’s head of HR, David Galloreese, said the “wrongful actions” involved the employees’ personal accounts & did not affect any customers.
The Small Business Administration is investigating more than $250 million in loans that may have gone to potential fraudsters. A recent Bloomberg analysis found even more suspicious payments, totaling at least $1.3 billion.