Wells Fargo & Company has agreed to pay $3 billion to resolve criminal and civil probes into fraudulent sales practices.
The firm has admitted to pressuring employees in a fake-accounts scandal.
According to U.S. Justice Department, Wells Fargo will pay the penalties to the U.S. Justice Department and Securities and Exchange Commission and enter into a three-year deferred prosecution agreement during which the San Francisco-based bank will continue to cooperate with any ongoing government investigations.
The agreement resolves the civil and criminal liability regarding Wells Fargo’s fake-accounts scandal.
About $500 million of the penalties will go to the SEC to be distributed to investors to settle charges that the bank committed fraud by misleading investors about its sales practices.