SEC Demands Wells Fargo Documents in Fraud Probe

(SEC)

The SEC wants to force Wells Fargo bank to turn over documents in the government’s investigation of potential fraud by the bank in its sale of $60 billion in residential mortgage-backed securities between 2006 and 2008.  The SEC filed a subpoena enforcement action in the Northern District of California claiming the bank has refused to provide documents it was obligated, and agreed, to produce to the Commission back in Sept. 2011.

The Commission says it is investigating whether Wells Fargo made material misrepresentations or failed to disclose facts in a series of securities offerings between Sept. 2006 and early 2008.

The SEC is investigating whether Wells Fargo misrepresented to investors that the loans being securitized complied with the bank’s loan underwriting standards, according to a prepared statement.

The Commission has asked U.S. District Judge Charles Breyer to enforce six subpoenas issued by the SEC.

The enforcement action seeks all loan underwriting guidelines, due diligence reports on the RMBS offerings; employee emails and communications with underwriters for the offerings pertaining to disclosures to investors.

The SEC asks for documents related to salaries and bonuses for Wells Fargo employees who worked on the RMBS offerings.

It also seeks 1,365 emails the company withheld as attorney-client privilege protected but later agreed to produce.  It has still not produced the emails, according to the SEC.

Case:  SEC v. Wells Fargo & Co., No. CV12-80087misc

 

 

 

 

Case:  SEC v. Wells Fargo & Co., No. CV12-80087misc

 

 

 

 

 

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