This article is not legal advice. It is presented
for informational purposes only.

If you are employed at a bank that you believe is engaging in fraudulent practices like opening fake bank accounts, and may be in the bank account scandal, you may be a candidate for a whistleblower investigation. Numerous banks may be involved in the fake bank account scandal, and consumer advocates suspect one of those banks may be HSBC.

Whistleblowers are an important way in which companies are held accountable for actions that may violate laws, and are often the first line of defense against violations. If you work at a bank that you believe may be in the bank account scandal, engaging in practices like opening bank accounts in customers’ names without their knowledge in an effort to meet sales goals, you could be a part of stopping this practice and helping customers.

Fake Bank Account Scandal

In 2016 and 2017, Wells Fargo made headlines after it was learned that many of the bank’s employees had opened fake bank accounts in customers’ names without their knowledge. Reportedly, this was done in an effort to meet aggressive sales goals, and bank management allegedly encouraged this practice.

According to research into the issue, employees were opening fake bank accounts in an effort to meet sales targets, which would qualify them for additional bonuses. USA Today reports that employees who failed to meet sales targets were often required to work extra hours, or were fired for failing to meet goals.

Reportedly, millions of fake accounts were opened at Wells Fargo.

In light of the fake bank account scandal, the federal Office of the Comptroller of the Currency launched an investigation into the issue to see if the fake bank account issue extended farther than just Wells Fargo. Though the office has not named the banks investigated, an investigation into 40 large and midsize banks showed that other banks besides Wells Fargo may be using the same deceptive practices to boost sales goals.

Deceptive practices that came into play in the fake bank account scandal may include:

• Opening accounts for customers that are unneeded
• Opening credit cards for customers without their permission
• Forging customer signatures
• Asking family members to open “ghost accounts”
• Opening duplicate accounts for customers
• Others

Whistleblowers in the Bank Account Scandal

Whistleblowers have already been a key part in helping shed light on the fake bank account scandal, and now lawyers are looking for employees at banks like HSBC who may be willing to be part of a whistleblower investigation.

One whistleblower, a former Wells Fargo branch manager in Pomona, Calif., reported that she believed that at least three bankers working under her were engaging in fraudulent practices like opening accounts in a customer’s name and enrolling them in services without their knowledge.

She was fired in September 2011, but federal regulators have since ordered Wells Fargo to reinstate her and pay her $577,500 in back wages and damages.

Barbara Goto, the regional administrator in San Fransisco of the Occupational Safety and Health Administration, said of the case that “no banking industry employee should fear retaliation for raising concerns about fraud and practices that violate consumer financial protections,” according to USA Today.

The federal government helps protect whistleblowers, as whistleblowers can be an important part of the justice system. The Whistleblower Protection Program works to ensure that whistleblowers do not have to fear retaliation for standing up to unlawful practices by their employers.