- Chief Compliance Officer and VP of Legal Affairs, Arrow Electronics
By 
Jeff Dale2022-08-03T20:44:00
Wells Fargo disclosed in a regulatory filing Monday the Department of Justice (DOJ) has opened an investigation into the bank’s “hiring practices related to diversity.”
In a quarterly filing with the Securities and Exchange Commission, the bank said government agencies, including the DOJ, have “undertaken formal or informal inquiries or investigations” regarding its hiring practices. Wells Fargo further acknowledged a securities fraud class-action lawsuit it faces alleging the company and some executive officers made “false or misleading statements” about hiring practices related to diversity.
According to the class-action complaint filed in June in U.S. District Court for the Northern District of California, Wells Fargo in 2020 expanded its diverse slate hiring policy, which required “at least 50 percent of interview candidates must represent a historically underrepresented group” for most roles in the United States with compensation greater than $100,000 per year.
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Wells Fargo disclosed it is under investigation by the Securities and Exchange Commission regarding cash sweep options it provides to new investment advisory clients.
The news for Wells Fargo related to alleged sham interviews of minority job candidates continues to worsen, with the bank disclosing the Securities and Exchange Commission has joined federal prosecutors in examining the issue.
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Aviation maintenance services provider AAR Corp. will pay nearly $56 million to settle charges that it violated the Foreign Corrupt Practices Act when it paid bribes to government officials in Nepal and South Africa.
