Wells Fargo Fraud Wasn’t Known to Fed, Whistle-Blowers Say

Whistle-blowers oppose motion to dismiss case against Wells Fargo

Federal Reserve’s lack of knowledge hurts Wells Fargo’s defense, they say

The FBI and the Securities and Exchange Commission may have known about alleged fraudulent conduct by Wells Fargo & Co. concerning the receipt of low-rate loans, but the Federal Reserve didn’t know, and therefore a false claims case against the banking giant must be allowed to proceed, whistle-blowers told a New York federal court.

Wells Fargo is mistaken in saying that the case lacks materiality, the whistle-blowers said, because the Federal Reserve didn’t have actual knowledge of alleged misconduct when ...