Prudential Sued in Fake Account Scandal Involving Wells Fargo
For several months, Wells Fargo & Co. has been dealing with a fake accounts scandal that has made national news — and now the issue has extended to Prudential Financial, Inc. The company recently suspended its business operations with Wells Fargo after a whistleblower filed a lawsuit accusing the company of selling fraudulent life insurance policies through Wells Fargo.
Now, the California Department of Insurance is preparing an investigation to determine if Prudential violated any securities laws. These investigators will look into the allegations of fraud and misconduct former employees brought forth. The whistleblowers allege Wells Fargo signed up its customers for these fraudulent Prudential policies without their permission, similarly to how the bank had admitted its employees were illegally registering customers for various products without their permission.
The three employees of Prudential who filed the suit claim they were punished for bringing forth questions and concerns regarding these practices. They were allegedly placed on administrative leave and escorted from the building by security officers. They were also reportedly threatened with termination.
Whistleblowers protected from retaliation
Whistleblowers who report information about wrongdoing within a corporate environment or a federal agency have some key protections from retaliation. Employers may not harass, threaten, demote or terminate employees simply because they did what they felt was right.
For more information and advice on how to protect your legal rights while serving as a whistleblower, speak with a skilled Dallas attorney at Whistleblower Law for Managers.