In addition to its discovery that Wells Fargo and GreatBanc caused the plan to pay more for stock than it would be worth when deposited in participants’ accounts, EBSA investigators learned Wells Fargo used the dividends paid on the preferred shares to defray its obligation to make contributions to the 401(k) plan, by using the dividends to repay the stock purchase loans. In transactions between 20, the plan borrowed money from Wells Fargo to purchase the preferred stock. Specifically designed for the plan, the stock converted to a set value of $1,000 in Wells Fargo common stock when allocated to participants. The action follows an investigation by the department’s Employee Benefits Security Administration that determined Wells Fargo and GreatBanc Trust Company caused the 401(k) plan to pay between $1,033 and $1,090 per share for Wells Fargo preferred stock. Wells Fargo and GreatBanc entered into the settlement without admitting or denying the allegations made by the department. Wells Fargo also agreed to pay a penalty of nearly $13.2 million as part of the settlement. Department of Labor today announced a settlement with Wells Fargo and Company and Wells Fargo Bank and GreatBanc Trust Company – a plan trustee – that recovers more than $131.8 million for the retirement plan’s participants after a department investigation found that, from 2013 through 2018, the fund overpaid for company stock purchased for the plan. Veterans' Employment and Training Service (VETS).Pension Benefit Guaranty Corporation (PBGC).Ombudsman for the Energy Employees Occupational Illness Compensation Program (EEOMBD).Office of Workers' Compensation Programs (OWCP).Office of the Chief Financial Officer (OCFO).Office of the Assistant Secretary for Policy (OASP).Office of the Assistant Secretary for Administration and Management (OASAM).Office of Labor-Management Standards (OLMS).Office of Federal Contract Compliance Programs (OFCCP).Office of Disability Employment Policy (ODEP).Office of Congressional and Intergovernmental Affairs (OCIA).Office of Administrative Law Judges (OALJ).Occupational Safety and Health Administration (OSHA).Mine Safety and Health Administration (MSHA).Employment and Training Administration (ETA).Employees' Compensation Appeals Board (ECAB).Employee Benefits Security Administration (EBSA).Bureau of International Labor Affairs (ILAB).Only one relationship discount may be applied per application. If automatic payments are canceled for any reason at any time after account opening, the interest rate and the corresponding monthly payment may increase. ![]() To learn which accounts qualify for the discount, please consult with a Wells Fargo banker or consult our FAQs. To qualify for a customer relationship discount, you must have a qualifying Wells Fargo consumer checking account and make automatic payments from a Wells Fargo deposit account. ![]()
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