California Regulator Investigating Wells Fargo For Unauthorized Insurance Policy Sales

By Francine McKenna Markets MarketWatch Pulse

The California insurance regulator announced on Monday that it was investigating new allegations by whistleblowers of fraud and misconduct at Wells Fargo The allegations were made by former Prudential Insurance Co. employees who have filed a lawsuit saying they were fired in retaliation for bringing reporting that Wells Fargo employees signed up customers for insurance policies from Prudential without the customers' knowledge. Prudential has a partnership with Wells Fargo to sell insurance products to the bank's customers. Wells Fargo previously admitted in a settlement with federal regulators and the California Attorney General that two million unauthorized accounts for its consumers were created by thousands of Wells Fargo employees.

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