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Wells Fargo Probing Three Senior Executives At Private Banking Unit - Report

Josh O'Neill

11 May 2017

Wells Fargo is investigating whether three senior executives in Chicago illicitly steered business toward certain people in its private banking arm, the Wall Street Journal reports. 

Two weeks ago, the bank suspended Chip Flannagan, a senior vice president and regional managing director for the bank's Chicago private banking operations, and ordered him to stay away from Wells Fargo offices as it interviewed dozens of employees, people familiar with the matter reportedly told the publication. The bank also reportedly suspended two other private banking executives, Scott Landau and J Scott Voigt, amid the investigation. 

The fresh allegations come months after the bank settled claims it had engaged in “widespread illegal” sales practices in its retail unit. As previously reported, however, the latest case is not thought to be connected to last year's saga.

Investigators are examining whether the executives steered Wells Fargo clients toward certain individuals working at the private banking unit and away from other employees who may have been better equipped to handle certain clients' needs, the WSJ reports. 

Concerns have been raised relating to the growth goals of the private bank, as they may have taken precedence over clients' needs, the people reportedly said. 

It is not clear whether any clients were harmed by the alleged actions, however. 

Family Wealth Report has reached out to Wells Fargo for comment and will update in due course.