Wells Fargo Uses Background Checks to Discover Employee Criminal Records

Wells Fargo Bank recently discovered some of their employees were more than they claimed to be.  Some of the bank employees where convicted criminals who liked about their previous transgressions with the law.  However, background checks revealed that the employees were in fact lying about their pasts.  Wells Fargo has dismissed them for past criminal records concerning dishonesty and breach of trust.

According to the article in the Sun Herald…”The decision to terminate team members over criminal matters that occurred prior to their employment with Wells Fargo may seem tough – we recognize that these situations are difficult for everyone involved – but laws and regulations related to the employment of bank employees are designed to protect the interests of all consumers who put their trust in financial service companies.

As an insured depository institution, Wells Fargo is bound by Section 19 of the Federal Deposit Insurance Act that prohibits us from hiring or continuing the employment of any person who we know has a criminal record involving dishonesty or breach of trust – regardless of when the incidents occurred. This includes convictions as well as situations where the person has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense, even if the charges ultimately are dismissed. Wells Fargo has been performing thorough background checks on all its team members – regardless of when they were hired – which includes a fingerprint check with the Federal Bureau of Investigation.”

The decision to terminate team members over criminal matters that occurred prior to their employment with Wells Fargo may seem tough – we recognize that these situations are difficult for everyone involved – but laws and regulations related to the employment of bank employees are designed to protect the interests of all consumers who put their trust in financial service companies.

As an insured depository institution, Wells Fargo is bound by Section 19 of the Federal Deposit Insurance Act that prohibits us from hiring or continuing the employment of any person who we know has a criminal record involving dishonesty or breach of trust – regardless of when the incidents occurred. This includes convictions as well as situations where the person has agreed to enter into a pretrial diversion or similar program in connection with a prosecution for such an offense, even if the charges ultimately are dismissed. Wells Fargo has been performing thorough background checks on all its team members – regardless of when they were hired – which includes a fingerprint check with the Federal Bureau of Investigation.

As a bank, it is realistic to assume Wells Fargo has conducted comprehensive background checks on its employment candidates.   Apparently, from the article, they also conduct recurring background checks, which larger companies perceive as advisable.  It is one thing to clear an employment candidate, but then what about those employees who are convicted after finding work?  What then?”  With Wells Fargo, of course, there are compliance standards that must be met–Section 19 of the Federal Deposit Insurance Act.  As for other, larger corporate entities, what are their policies on conducting recurring background checks on current employees?

In certain employment positions in sensitive industries, technology, aerospace, financial, it may well pay to conduct periodic background checks.   Since the recession, more than a few employees have gotten themselves into trouble and have committed desperate acts.  Some were in-house employee theft, which was ultimately discovered by the employer.  And some of the criminal activity was outside the office, who may have called in sick for several days to explain their sudden absence.

Anyway, here lies a cautionary tale.