An irreverent Wall Street Blog
by Bill Singer

Wells Fargo Shocked By Employee Theft

November 4, 2016

Irony can be a pretty funny thing.  For example, take Wells Fargo's much publicized cross-selling and leveraging of its customer base. By most measures, that strategy was a phenomenal success resulting in the opening of many new customer accounts. Unfortunately, that same strategy produced a $185 million fines when it turned out that 2 million of those new accounts were unauthorized. Why did Wells Fargo undertake such a dramatic push for new business?  Likely to boost its bottom line and enhance its reputation. What did it cost the firm when its bogus account rampage was revealed? It took a hit to its bottom line and its credibility and integrity were hammered. How ironic, no? The gods have not quite finished playing with this mighty Wall Street firm: Consider a recent bit of irony involving an employee ripping off the firm.

Case In Point

For the purpose of proposing a settlement of rule violations alleged by the Financial Industry Regulatory Authority ("FINRA"), without admitting or denying the findings, prior to a regulatory hearing, and without an adjudication of any issue, Susan Kathleen Menne submitted a Letter of Acceptance, Waiver and Consent ("AWC"), which FINRA accepted. In the Matter of Susan Kathleen Menne, Respondent (AWC 2016050193401, October 31, 2016).

 In August 2014, Menne became associated in a non-registered capacity with Wells Fargo Advisors, LLC. The AWC asserts that Menne had no prior disciplinary history.

Holiday Gift Giving

The AWC asserts that In December 2015, Menne took $200 worth of gift cards from Wells Fargo Advisors and, thereafter, starting on January 2, 2016, she used the cards to pay for personal purchases. All of which sort of sounds like a self-help version of a Christmas present used to buy New Year's gifts. It's also more than a bit ironic that a Wells Fargo employee is stealing from that firm.

Shocked . . . Shocked!

The AWC alleges that Wells Fargo terminated Menne on May 11, 2016, and in a May 31, 2016, Uniform Termination Notice for Securities Industry Registration ("Form U5"), the firm stated that she:

[c]ame into possession of, and used, gift cards that had been taken from the same area of the Firm in which Ms. Menne worked."

You'd sort of like to think that Wells Fargo would have had some compassion, some empathy for its wayward employee.  If nothing else, maybe the firm would have felt some shock of recognition and mused about "been there, done that" or "there but for the grace of God go I." After all, Wells Fargo came into possession of and used customer accounts that were, in a sense, "taken" from customers in the same area of the firm where many employees worked. 

Apparently Wells Fargo doesn't appreciate the subtleties of irony because in May 2016, Menne was allegedly charged with misdemeanor theft of property, to which she pleaded guilty in August 2016. All of which suggests that Wells Fargo pressed criminal charges. Oh my, Wells Fargo was shocked . . . shocked . . . to find that one of its employees was a thief. Remember when Wells Fargo said it had fired about 5,300 employees for their misconduct with the opening of so-called ghost accounts? By the way, anyone recall whether Wells Fargo was charged with misdemeanor theft in connection with those so-called ghost accounts?

In accordance with the terms of the AWC, FINRA imposed upon Menne a Bar from association with any FINRA member in any capacity.


Bill Singer's Comment

Seventy-four-years ago, the classic film "Casablanca" was released but it seems only yesterday when Wells Fargo paid $185 million in fines and penalties to settle a Consumer Financial Protection Bureau ("CFPB") investigation that uncovered some 2 million unauthorized accounts. READ the CFPB Wells Fargo Consent Order. 

When it came to casting the role of Rick for the classic film "Casablanca," we got Humphrey Bogart. When it came to casting the role of Wells Fargo's CEO, we got John Stumpf. How unfortunate; and let's not even begin to discuss the disparity between the supporting casts. Imagine how Bogie would have handled those clowns in Congress when they tried to press him for answers about his firm's alleged misconduct.

Of all the gin joints in all the towns in all the world, Menne walks into Wells Fargo. It's not like Menne was a crook or anything. Well, okay, maybe she was but it's not like she wasn't surrounded by a corporate culture that placed a premium on setting up bogus accounts and ripping off its customers. Couldn't Wells Fargo have simply opened up just one more bogus account in Menne's name, run up $200 in charges, and then left it at that? Even stevens. Once more for old time's sake. Couldn't Wells Fargo have laughed at the irony of one of its employees ripping it off after the firm had done the same to 2 million customers? 

Maybe my sense of humor is a bit of an acquired taste. Maybe my warped view of right and wrong is a bit dated. Might explain why I still love "Casablanca." Might also explain my disgust with Wells Fargo and its tired excuses.

Permalink

Search BrokeAndBroker

Related Topics

Previous Entries

Tag Cloud

Bill Singer BrokeAndBroker FINRA Arbitration AWC SEC BrokeAndBroker.com Expungement Employment Street Sweeper Bill SInger Jobs Wells Fargo Fraud OBA U5 Promissory Note Email U4 Wire Fraud UBS Forbes Merrill Lynch FBI Elderly Morgan Stanley Statutory Disqualification EFL PST ALJ Citigroup Suitability Defamation CRD Borrowing Ponzi Rule 3270 BrokerCheck Outside Business Activity Whistleblower OIP IRS Supervision Form U4 Wachovia Guest Blog Felony Willful Bank DOJ Wrongful Termination SDNY Supreme Court Mail Fraud NAC Expenses BrokerAndBroker Ameriprise Pro Se Discretion CCO Guest Blogger Insider Trading IRA Form U5 Employment Tuesday Checks Madoff Conversion Rule 2080 WSP Raymond James Bankruptcy OHO Punitive Damages Credit Card Rule 3240 Forgery Rule 3040 NASD Wife Willfulness Husband Tax Discovery Private Securities Transaction Estate Dodd Frank Rule 1122 Rule 8210 RIA Rule 2010 Settlement Outside Business Activities Indictment JP Morgan Business Expenses Real Estate Wall Street Power of Attorney Frumento Commissions Exam 2Cir LPL Street Legal Impersonation NYSE Bar Annuities Facebook Tax Lien Edward Jones ATM Stephen Kohn Case In Point Mortgage Corrective Action Statement BrokeAndBroker Antitrust Margin Small Firm Bank of America Rule 3280 Test SRO Schapiro Appeal Tax Liens Spouse Wire Beneficiary ARS Trust NSF Employee Forgivable Loan Schwab Due Diligence Offer of Settlement Goldman Sachs Misdemeanor Complaint Rule 2510 Securities Fraud Trustee Signatures HFT NASAA Conspiracy ETF T&P Promissory Notes VA Injunction Initial Decision Lien Fidelity Signature Aegis Frumento Chase Loan PCAOB Flash Crash Cease And Desist RBC Annuity Barclays Away Account LOA Unauthorized Discretion POA Credit Cards Mandatory Arbitration Deutsche Bank DCCir Money Laundering Huffington Post NASDAQ CFTC Gallagher Insurance Bharara Identity Theft Undisclosed Settlement OTR Hacker Variable Annuity Great Recession Lehman Brothers email MSSB Scottrade Unfair Competition Remand Burris Compliance Continuing Education Registered Rep Magazine Bonus RRBDLAW.com Liens Stay Failure to Supervise Spouses Eligibility Rule Audit Rule 12206 Letter of Authorization Malware Annual Compliance Questionnaire FINRA Arbitration Solicitation E*Trade Fiduciary Stockbrokers Rule 3010 JPMorgan Wedbush Forex employment Options Disclosure Solicited Reimbursement Rule 12805 jobs Net Capital 2nd Circuit Hacking LIBOR Rule 3050 BrokeAndBroker Bill Singer Registration Will Second Circuit Away Accounts Social Media TRO Website brokeandbroker Wey Retirement Prison arbitration FINOP Customer Rule 4511 Customer Complaint Internet OWB 10Cir Brummer Plea Lehman Motion to Dismiss RRBDlaw.com China Newman Reg SP IC3 Bureau of Prisons Unsolicited Variable Annuities RMBS Telephone Dissent Rule 4530 Private Securities Transactions Apple BOP Judgments Time And Price FOREX Private Placement Willfully Personal Expenses BrokeandBroker Trading Platform Unauthorized Trading Zipper Unsuitability Broker Protocol Sanctions Examination NYAG Commission MC-400 Cheating Rule 12200 Auction Rate Securities Spoofing DOL Arbitraiton Obstruction of Justice MetLife Deceased WSPs Explained Decision REIT Disgorgement Hedge Fund FNMA Statute of Limitations Check Kiting Confidential Information Protocol Piwowar ADA Rule 2111 Divorce Stifel Self Regulation Knight Crowdfunding Stifel Nicolaus Rakoff Dakota Securities Lucia Board Retaliation ACQ Wine Churning Hurry OSHA Pennystock Phishing Gold Check Due Process Conflict Joshua Brown Botkin Sexist BrokeAndBroker.com Blog Affiliate Class Action High Frequency Trading bill singer Regulation SP Affinity Fraud Passcode Shah Gilani Fees PN Appointments Clause Rule 2150 Woody Allen Lawyer Stanford Confidential Vacatur Ketchum Jurisdiction Executor Rosenthal Recruiting Aleynikov Indemnification Khuzami SAC Morgan Keegan Reg D Bonds Bandimere Wire Transfer MF Global Article V Banc of America OIG Sanction Guidelines Raiding EIA Rule 2081 Medicare JOBS Act Compensation PNC Charge 9Cir Hilton Weiner IPO Postponement Waiver Debit Card Emails Discrimination Marine Corps Corruption Vietnam Bid Rigging Marines Eligibility Puerto Rico TD Ameritrade Casino Johnny Burris Charles Schwab ING Deferred Compensation Guitron Yesenia Guitron 401k Corzine Whitman Government Accountability Project Ride the Thunder Elder Abuse SunTrust Statutory Disqualification Committee Membership Continuance Vault Testimony Aguilar Oppenheimer Charity Online Securities Industry Commentator Smith Barney Chief Compliance Officer Marketplace NPR Penson Information Failure To Supervise Finder\'s Fee Sexism Customer Information Teleconference Morgan Stanely Kon Small Firm Governor Imposter Laptop AML Hearing Rule 3030 Mutual Funds Morgan Stanley Smith Barney White USERRA Suspension Whistleblowing 6th Circuit McDuff CEO Widow Self Regulatory Organization Bank Fraud Commodities Fraud Sales Assistant Side Bar Embezzlement Unjust Enrichment Poteroba Statement of Corrective Action Mutual Fund Restaurant Termination Rule 13805 Written Supervisory Procedures Parking Bear Stearns Dementia Confirm Testing Accounting Private Placements Reg S-P HSBC Rule 3110 Consent Order Pennystocks Loans Bloomberg Series 7 Disability Marijuana CE Employment Agreement Concentration Day Trading Unregistered Elles Research CPA TheBlot IAR Rule 9216 Motion to Vacate Chiasson Oral Discretion Scholander ACH Department of Justice Stockbroker Verbal Discretion Withdrawals Public Interest 11th Circuit Schneiderman Negligence Margin Call Do Not Call signature TOD Probate FOCUS RRBDlaw Sexual Harassment Inside Information BD Investment Adviser Rule 2210 SP Thain Timban CRS Client Information Motion Settling Away Fowler Medical Condition Star Wars Form ADV Judgment Rule 1031 Counterfeit Board of Governors Rule 2370 OWWP Tax Fraud Equity Indexed Annuities Outside Accounts Kiting Commodities Chase Investment Services Non-Solicitation Password Circuit Court Congress Sharemaster Feigenbaum Robert Cook Red Flags Guest Bloggers Fine Hospital Dell Layering Mother Administrative Remedies TSSB Scottsdale PAQ Backstage Wall Street Outside Account Arrest TIC FINRA AWC Fifth Amendment Leveraged ETF Moon Over Concentration CGMI FCI Beaumont FCI Christian Stanley Taft Correctional Institution Reverse Life Insurance Wanger Commissioner Stein 401(k) Stop Loss Investor Alert Trade Secrets Florida Unsuitable Tortious Interference OCIE BATS Escrow Credit Suisse Inability to Pay Argentina Unauthorized Practice of Law Female 40 Act Stipulated Award WaMu 4Cir Moore Netschi David Sobel expungement Counterclaim BrokerAndBroker.com Inmate Third Party Vendor Lincoln Financial CNBC Federal Reserve Severance Broke And Broker Short Sale Fiduciary Duty Reuters Compromise Jennifer Tarr Chase Bank Wires 8210 SIPC Mattera Nasdaq Cold Spring Advisory Group CD 9th Circuit Joint Account Murray LLC Payroll Wire Transfers Cellphone Johnson Supervisor US Airways NRSRO Rory Flynn MSPB Willfull AXA Baby Boomers Travel Kenneth Starr Bartko Proctor Bill Singer BrokeAndBroker TCR iPhone Flash Drive 1Cir Attorneys Fees Sexual Discrimination Reason for Termination Summary Judgment Countrywide Rule 12504 Varney Tran Spoliation CMO Customers Taxes Money Market Trader ADR Initials FINRA Board Funds Newbridge State Farm JPM Excessive Trading Personal Information Brokeandbroker.com Elder Fraud Subway Motion To Dismiss Constitution Rules of Practice Hugh Hewitt S&P FCPA Practice Sale Prime Bank Impersonator AWC. FINRA Kennedy Statute of Limitation Rule 13200 Blank Forms Merrill Regulation S-P Permanent Bar VXX Apartment BrokeandBroker.com Attorneys\' Fees Branch Manager Wells Fargo Advisors Data Undertaking Anderson Resignation Mary Jo White Eric Stein CDO BrokeAndbroker Bank Guarantee Lawyers Mary Schapiro Rule 4513 Grievance God Ethics Advisor Placement Group Risk Death Disciplinary History Martin Salman Sears Pension Compliance Questionnaire Credit Repair Liquidation Goble Stephen A. Kohn Undercover Laser Theft Merger Dinner Mistake RRBDLAW Immunity Scam Promoter Turbeville Conflicts Test Center Municipal Advisor NFA Reverse Merger Criminal Selling Away Books And Records MBS Skimming EDNY Koval Newport Coast Securities AAA FMLA Naskovets Regulation Office of Special Counsel Compliance Officer Fee Trainee Fee 1099 Bill singer Lee Lek Customer Files Standing Financial Disclosure Cannabis Service Enforcement Altered Records 17a-5 Chevron Annual Audit Securities and Exchange Commission Turnover Collateral House Financial Services Disparate Treatment Galleon Excel Outside Counsel Subpoena NML Molchatsky Falsification Texas State Securities Board Non Solicitation Stock Promotion Martoma false statements Trading SD Broy Puts Books and Records Pacifico Non-Prosecution Agreement Silver Jon Corzine Merill Lynch Evidence PIABA FDA Father Schumer Dow Checking Privilege Spam Finra Lewis Carroll Diabetes Texting SEC Rules of Practice DWI Fiero Hertz In House Counsel Currency Sex BrokeAndBroke Fines Preet Bharara Obamacare Leveraged ETFs Walter Executrix Expert Witness Relevant Exhaustion Doctrine Obstruction Google Reform Tipper Fourth Amendment SIFMA FTC Cherry Picking BIll Singer Nationwide Cybercrime Rule 420 Wages Tippee FNI Media Oilpro Kent Springsteen Elder Law David Lerner Pruco Electronic Communications Manifest Disregard McCartney AIG 9/11 BBVA Tennis Court Bribe Nietzsche Costa Rica Gabelli Boyland GAP Expense Retroactive Constructive Discharge Janney Montgomery Scott Collateral Bar Solomon Retroactive Bar Sharing Agreement Quasi Governmental Rule 9552 BitTorrent Retired Woman With Cane Meals NYG Capital FINRA Small Firm