‘€E1 [Devin A. MoRae, State Bar Number 223239 Ss dmerae@earlysullivan.com v w— = 2 J EARLY SULLIVAN WRIGHT GIZER & MCRAE LLP CL, [les Angeles Calor sons ity of Loe Angola ‘elephone: 4 oO Facsimile, (523) 301-4676 JUN 89 2016 3 st |Attomeys for Plaintiff ‘Shor R. Ce Wve Officer Cierk 6 | ALTAGRACIA UGALDE MOTTA A/K/A ANA os —— 7 BARBARA, 8 SUPERIOR COURT OF THE STATE OF CALIFORNIA ° COUNTY OF LOS ANGELES, CENTRAL DISTRICT | 10 1 | ALTAGRACIA UGALDE MOTTA AK/A | Case No-BC§ 25644 iy | ANABARBARA. an individual, Plaintiff, COMPLAINE FOR CONVERSION, " DECEIT, NEGLIGENCE, AND vy. DAMAGES UNDER 15 US. C. § 4 1693m(a) WELLS FARGO & COMPANY... 15 | Delaware corporation, WELLS FARGO BANK. N.A., a national banking association, 16 | ARTURO ARIAS, an individual, and DEMAND FOR JURY TRIAL, JORGE VALDEZ, an individual, ” Defendants. 18 19 2» a a ez q BR 54 23 mg 3a Zz. 3a a | 20 g | e x ge. 8 i sk eo % go wo a 2 pa Feane 2 ceet ® ES | sttuan BS8a Uz wie _ Be EA Greene AUD | eR ws eal= = AGT 20 2 2 2 24 2s 26 a Plaintiff Altagracia Ugalde Motta a/k/a Ana Bérbara (“Ana Barbara”) alleges as follows: FACTUAL BACKGROUND 10 THIS LITIGATION 1. This is @ vase about how one of the largest and most powerful financial institutions in the world, Wells Fargo & Company, a Delaware corporation, together with its affiliate, Wells Fargu Banik, N.A., « national banking association (“collectively, “Wells Fargo”), lured international recording and television star Ana Barbara into entrusting her net worth to Wells Fargo’s clutches, ]which through a cabal of Wells Fargo’s baukers then: proceeded to loot her accounts to the end result that almost half a million dollars of money that Ana Barbara entrusted to Wells Fargo wound up vanishing down the proverbial rabbit hole. 2, Ana Bérbara, # Mexican national, is renowned internationally as a Latin recording and television star. Recognized both for her extraordinary musical talent aud personal charisma, she| is one of the few performers of Mexican regional music to have won international acclaim even extending into the United States. Indeed, she is widely regarded as having defined the performance lof the Mexican folk music style known as “Grupero,” and has won the Latin Grammy award. 3. Wells Fargo is well known for creating a corrupt business culture which pressures its jcmployces to lure customers into setting up multiple undesired accounts with Wells Fargo, thereby maximizing Wells Fargo’s profits while at the same time exposing its customers to needless costs land injuries. According to the Los Angeles City Aomney’s Office, Wells Fargo “imposes unrealistic sales quotas on its employees, and has adopted policies that have, predictably and naturally, driven its bankers to engage in fraudulent behavior to meet those unreachable goals. As a| result, Wells Fargo's employees have engaged in... fraudulent conduct, including opening customer accounts, and issuing credit cards, without authorization.” See Exhibit A attached hereto and incorporated herein by reference [Complaint in Case No. BCS80778, filed with the Los Angeles County Superior Court on May 4, 2015 (the “City Attorney's Complaint”), page 1, lines 10-14) Through Wells Fargo's so-called “Gr-eight” initiative, Wells Fargo has adopted the goal of| [causing its account holders to increase their number of Wells Fargo bank accounts or financial 91ST 8E 190 28 EaRwy SULLIVAN wricHr Grzen 8 MCRAE we products to an average of 8 per account holder. Exhibit A [City Atorney’s Complaint, page 2, lines| 12-13], Indeed, Wells Fargo exhorts its employees to cause their friends ad family members to 1 COMPLAINT1 | open up accounts with Wells Fargo. whether or not these accounts are actually funded, because even| 2 | unfunded or low balance accounts can result in fees payable to Wells Fargo. Exhibit A (City 3 | Attomney’s Complaint, page 7, lines 11-17]. 4 4. As part and parcel of this Wells Fargo corrupt business culture, Wells Fargo has 5 | adopted the practice of enrolling its customers in online banking and online bill paying without thei 6 | consent, irrespective of the grave potential risks to which these customers become exposed by 7 | virtue of this practice. Thiough Wells Fargo’s hallmark practice of “pinning,” Wells Fargo, on its 8 | own initiative and without customer authorization, allocates Personal Identification Numbers to 9 | customers so that Wells Purgo employees can impersonate these customers online and enroll those 10 {customers in online bunking and online bill paying without their consent. Exhibit A [City 11 | Attomey's Complaint, page 3, lines 18-22]. Once the Wells Faigo employee sets a Personal 12 | Identification Number for a customer account, the Wells Fargo employee typically can 13. |*impersonate the customer online, and input false generic email addiesses . . . to ensure that .. . the 14 customer remains unaware of the unauthorized activity.” Exhibit A [City Attomey’s Complaint, 13. |page 8, lines 11-18]. 16 5. Through Wells Fargo’s hallmark practice of “bundling,” Wells Fargo employees arc 17 | encouraged by Wells Fargo management to ultach extranevus products to customer accounts, which 18 |/extra products are not wanted by the customer and indeed are not authorized by the customer. As 18 | part of this practice, Wells Fargo “[e]mployees were, and are, instiucted by management to lie to 20 Jeustomers, ...” Exhibit A [City Attorney's Complaint, page 7, lines 22-27] 2 6. This high-pressure sales environment created by Wells Fargo, combined with Wells 22 | Fargo’s lax intemal safeguards, have created a hothouse for the growth of fraud and theft. See 23 | Exhibit B attached hereto and incorporated herein by reference [CBS ST Bay Arca web article dat 24 | February 3. 2016, entitled “Wells Fargo Workers Allegedly Stole $800K from Dead Customers’ «= 25 | Accounts,” reporting how a Wells Fargo worker used his position as « Wells Fargo employee to 26 Jenabie his friend/oo conspirator to access (and steal money out of) the accounts of elderly and/or = 27 | deceased Wells Fargo customers). See also Exhibit C wlached leretv and incorporated herein by Teamty 2 | reference [Banking on the Hard Sel,” the June 2016 report issued hy the National Employment SS Sti = | Wace 2 MIB riche we COMPLAINT20 7 n n 4 eo 2s 6 ca e e Law Project). 7. Mexican nationals have been a particular target of Wells Fargo’s corrupt practices. Exhibit A [City Atfomey’s Complaint, page 9, lines 17-22] 8. Ana Barbara became the victim of Wells Fargo’s corrupt scheme to maximize its, profits 9. In or about April 2012, defendant Arturo Arias (“Arias”) was a Wells Fargo employee who was very familiar with Ana Bérbara’s fame as an international recording and ploy x 2 television star; indeed, he was a fan of Ana Barbara who frequently attended her performances. In the pressure-cooker environment created by Wells Fargo to induc employees to open up new customer accounts, Arias’s landing a celebrity customer like Ana Barbara would be quite a coup. ‘Ana Barbara, who had never heard of Wells Fargo’s corrupt business culture but instead knew of Wells Fargo only as a large and prestigious financial institution, was approached by Arias, who presented himself to Ana Barbara as a Wells Fargo employee. Arias then proceeded to insinnate himself into Ana Bérbara’s circle of friends and associates. 10. Through his relationship with Ana Barbara as her supposed friend, Arias, in or about account at Wells Fargo’s Bolsa January 2013 persuaded Ana Barbara to open a personal checkit jand Golden West branch bank “store” (the “Store") located at 6952 Bolsa Ave., Huntington Beach CA 92647 (this account, along with a linked personal savings account, is, collectively, the “Personal Account"). This account opening took place by Arias’s coming to Ana Bérbara’s home and having her sign English language documents there, instead of at the Store. Ana Barbara is a Spanish speaker, unable to carry on a business conversation in English or to read bank documents ie English; accordingly, she relied on Arias to represent her interests in setting up the Personal ‘Account. In setting up the Personal Account at the Store, Arias worked through Store employee Kashif Chawla (“Chawla”) 11, Onor about March 1, 2013, Arias convinced Ana Barbara to open a business checking account with Wells Fargo atthe Store in the name of her corporation, Lo Busque /Productions, Ine. (“Busque”) (this account, along with a linked business savings account, is, eaney ?® uy [Sila = Jinan iim | Gk? , ABM racine collectively, the “Business Account"). As was the case with the Personal Account, the Business a ‘COMPLAINTe eS m Ear 20 2 2 2 4 25 6 a1 28 = | stun which Gizrae = GM MCRAE we Account opening took place at Ana Bérbara’s home, and, once again, Arias saw to it that Chawla was the Wells Fargo banker assigned to handle the Business Account. As before, Ana Barbara relied on Arias to represent her interests in setting up the Business Account, Indeed, Arias instructed Ana Barbara that, as her Wells Fargo bank representative, he would be in charge of all, her accounts and would monitor them for her 12, Due to his having opened the aforementioned Wells Fargo accounts for Ana Barbara, and as the Wells Fargo employee who brought Ana Bérbara’s accounts to banker Chawla, Arias ‘was in possession of or able to acquire the personal identification information (collectively, ‘Personal Identifiers”) of Ana Bérbara set forth in Wells Fargo’s computer and other files relating, to the Personal Account and the Business Account 13, Tnor about May 2013, Arias began using Ana Barbara's Personal Identifiers to steal Imoney from the Personal Account and the Business Account. Using Ana Barbara's Personal {Identifiers, and in accordance with Wells Fargo’s hallmark “pinning” technique, Arias was able to create an online profile for Ana Barbara by setting forth Arias’s email address(es) (and not any logitimate email address associated with Ana Bérbara or Busque) as being the email address(es) set forth in the spurious “Ana Bérbara” online profile. In so doing, Arias created password(s) known ‘uniquely to Arias, which password(s) would enable Arias to access Ana Barbara's funds while at the same time preventing Ana Barbara from herself having online access to her own accounts. Indeed, a3 she had not herself ever set up any online profile for her accounts, Ana Bérbara had no knowledge whatsoever that online access had been created for either her Personal Account or her Business Account. 14, Inor about January 2014, Arias, assisted by Wells Fargo employee Jorge Valdez (“Valdez”), conspired to open an unauthorized Wells Fargo line of credit (the “Fraudulent Credit Line”) in Ana Barbara's name. Valdez conspired with Arias in Arias’s forging of Ana Barbara’s signature relative to the opening of the Fraudulent Credit Line. 15, Thereafter, Arias, assisted by currently unknown Wells Fargo employees, also Jopcncd for his benefit unauthorized credit and/or debit card accounts with Wells Fargo and other financial institutions in Ana Barbara's name (the “Fraudulent Card Accounts"), relative to which 4 COMPLAINTArias forged Ana Bérbara’s authorizations, 16. Arias’s unauthorized establishing of the Fraudulent Credit Line and Fraudulent Card Accounts were consistent with Wells Fargo’s hallmark practice of “bundling.” Indeed, Arias also proceeded to open numerous other checking andlor savings accounts (the “Additional Accounts”) it /Aua Barbata's name at Wells Fargo, all without her knowledge or authorization. 17. Arias prevented Ana Barbara from ever discovering any of his (and his cohorts’) iMlickt activities by: (a) causing periodic Wells Fargo (and other) bank statements relating to the Personal Account, the Business Account, the Additional Accounts, the Fraudulent Credit Line and the Fraudulent Card Accounts to be sent o Arias"s own home anor ena adkdvesses and not to any} legitimate address associated with Ana Barbara; and (b) regularly going to Ana Bérbara’s home (which address was one of Ana Barbara's Personal Identifiers, and which addiess Arias also jincorrcetly began listing as being his own for various purposes, including registering automobile) and rifling through Ana Barbara's mailbox to remove therefiom any Wells Fargo fotters and/or statements that did manage to find their way to Ana Barbara's home, Of course, ‘Arias's keeping Ana Barbara unaware of Arias’s unauthorized activities is part and parcel of Wells, tutional culture of “pinning” and “bundling,” 18. Arias used Ana Barbara's Personal Identifiers to cause there to be printed out checks relative to the Business Account, which checks were given to Arias by another Wells Fargo lemployee. 19. Arias utilized the Fraudulent Credit Line, the Fraudulent Card Accounts, the Personal Account and the Business Account as his own personal piggy bank, spending money for himself as and when he so desired, Ana Bérbara: (2) had no contemporaneous knowledge of the existence of the Fraudulent Credit Line and the Fraudulent Card Accounts; (b) never authorized any| of Arias’s uses of the Fraudulent Credit Line, the Fraudulent Card Accounts, the Personal Account or the Business Account; (c) received no benefit from any of Arias’s uses of the Fraudulent Credit Line, the Fraudulent Card Accounts, the Personal Account or the Business Account; and (d) did not discover these thefts as they occurred because Arias diverted and/or intercepted all Wells Fargo letters and/or statements relative thereto so that Ana Barbara never received any uf such letters = wl 4 5 6 7 8 ° 10 u 2 3 “ 18 16 " 8 19 20 21 2 2 24 e 2 2 6 & won 38. Eanwy SULLIVAN wright Gren MCRAE we COMPLAINT= = AGM 20 21 2 23 4 2 26 at 91071 9£/96 and/or statements. 20. Arias would transfer online monies from and among the various Wells Fargo accounts in Aua Béibara’s name, causing money from Ana Bérbara’s own authorized Personal Account and Business Account and unauthorized Additional Accounts to be siphoned away to pay Jdown de amounts Arias incited under the fiaudulently created Fraudulent Credit Line and Fraudulent Card Accounts. Arias would also make unauthorized withdrawals of money from Ana [Barbara's Wells Fargo accounts and/or the Fraudulent Credit Line, either at Wells Faigo branches, ATM machines, and/or by asking for cash back at various stores where he made fraudulent [purchases using the Fraudulent Card Accounts. Ana Barbara: (4) had no contemporaneous knowledge of the existence of these online money transfers, or purchases or withdrawals; (b) never authorized any of these online money transfers, ot purchases or withdrawals; (c) received no beneti from any of these online money transfers, or purchases or withdrawals (and indeed suffered the loss Jot her funds transferred thereby); and (d) did not discover these thefts as they occurred because Arias diverted and/or intercepted all Wells Fargo letters and/or statements relative thereto so that Ana Barbara never received any of such letters and/or statements 21. Through the aforementioned activities, Wells Fargo, Arias, and Valdez caused over $416,000 of Ana Barbara’s funds fraudulently to be transferred away from Ana Barbara and into ‘Arias’s hands and/or for his benefit. while the unauthorized creation of and use of the Fraudulent (Card Accounts has resulted in Ana Barbara's credit rating being damaged to the point where she is lunable to obtain ordinary market financing for her purchase of a new home. 22, On or about August 27, 2015 Arias confessed to Ana Barbara how he, Wells Fargo land its other employees caused the theft of over $416,000 of Ana Barbara's money through the aforementioned fraudulent transfers. 23. Onor about August 28, 2015, Valdez, while on duty at his job at the Wells Fargo Garden Grove branch, located at 12952 Harbor Boulevard, confessed to Ana Barbara and 1 the Garden Grove branch manager that he (Valdez) conspired with Arias in improperly setting up the Fraudulent Credit Line for the purpose of looting Ana Barbara's accounts, 28 EARty SULIvaN waichr. Gerry MCRAE we 24, Asa result of Ana Barbara's discovery of the theft of over $416,000, comprising the 6 ‘COMPLAINT= = ABM | i S 10 n 20 2 2 2 a 25 26 2 28 Ean SULLIVAN wricHT Gizer ¢ RAPP vast bulk of her liquid assets, Ana Barbara was in a state of shock and had to cancel scheduled concert tours to Mexico and Bolivia, resulting 1n her losing approximately an additional $884,000 25. On or about September 11, 2015, Ana Barbara filed with Wells Fargo a series of claims with regard to the over $416,000 of her money franculently transferred from her accounts by Arias, Wells Fargo and its other employees 26. Onor about September 16, 2015, Wells Fargo, without any knowledge thereat hy ‘Ana Barbara, created a new unauthorized checking account in her name, ending in the numbers 5091. At or about the same time, and without any knowledge thereof by Ana Barbara, Wells Fargo deposited $127,482.46 (the “Wells Fargo Payment”) into this account. Ana Barbara has recently discovered that the Wells Fargo Payment was purportedly made to reimburse her for a portion of the monies siphoned out of her Wells Fargo accounts in payment of Arias’s use of the Fraudulent Credit Line, 27. Without referencing anything at all relative to the Wells Fargo Payment, on or about December 9, 2015, Wells Fargo, through its in house counsel, coldly responded to Ana Barbara's claims by improperly cloaking itself in federal Regulation E (12 CFR, Chapter Il, Subchapter A, Part 205 et seq.) (“Regulation B”), falsely asserting that Regulation E prevents Ana Barbara from recovering more than a total of approximately $3,500 of the remaining $289,000+ (net of the Wells Fargo Payment) stolen from her by Arias, Wells Fargo and its other employees. According to the December 9, 2015 letter written to Ana Barbara by Wells Fargo, Regulation E blocked Ana Barbara from being able to recover anything more than this paltry $3,500 amount because Ana Barbara allegedly had not notified Wells Fargo, within 60 days of Wells Fargo’s dissemination of statement(s) reporting same, of the unauthorized transfers comprising the approximately $285,500 (net of the Wells Fargo Payment) remainder of monies siphoned out of her Wells Fargo accounts. Notwithstanding Wells Fargo’s incorrect assertions, however, Regulation E's otherwise pertinent [60-day notice requirement does not apply to the Wells Fargo statements reporting said unauthorized) transfers of more than $285,500 from Ana Barbara's accounts, ay these statements were never received by Ana Barbara but were Instead delivered by Welly Fargo inta the hunils of Arias, its 1 ‘COMPLAINT1 | corrupt employee who (consistent with Wells Fargo’s hallmark policies of “pinning” and 2 | bundling,” and in accord with the overall cloud of deceit fostered by Wells Fargo) used Wells 3 | Faigo’s systems (as well as his own physical theft of documents) to ensure that Ana Bérbara never 4 [received said statements. According to § 205,6(b)(4) of Regulation, Wells Fargo is required in 5 [extenuating circumstances ... [to] extend the times specified” for consumer notification to Wells 6 |Faryo of unauthorized transfers. There can be no greater “extenuating circumstances” relative to 7 |a consumer's timely reporting unuuthorized transfers set forth on bunk statements than the 8 | consumer’s failure to receive such statements due to the wrongful actions of the bank and its 9 employees. Moreover, Regulation E's customer notification requirements expressly do not apply to 10 J electronic fund transfers “initiated . .. [bly the financial institution or its employee” (§§ 11 |205,2(m)(3) and 205.6(b)(3) of Regulation B). Because Regulation E § 205.2(0u)(3) expressly 17 |provides that an clectronie fund transfer initiated by the financial institution or its employee is not 13 Jan “unauthorized electronic fund transfer,” Regulation E § 205.6(b)(3)'s consumer notification 14 | provisions are inapplicable, as they apply only to “unauthorized electronic fund transfer{s].” \ 1s 28. Asaresult of the improper activities of Arias, Wells Fargo and its other employees, 16 | Ana Bérbara has lost over $1,173,000 (the $289,000 stolen net of the Wells Fargo Payment, and 17 | the $884,000 in lost income) and suffered the serious damaging of her credit rating, 8 THE PARTIES idual 9 29, Plaintiff Ana Barbara is an zen of Mexico temporarily residing in Los 20 | Angeles County, California. a 30. Defendant Wells Fargo & Company is, and at all times relevant hereto was, a 2 | corporation organized and existing under the laws of the State of Delaware, with its principal place P01 prineip. 23 | of business in San Francisco, California. 2 3. Defendant Wells Fargo Bank, N.A. is, and at all times relevant hereto was, a national 25 | banking association chartered under the laws of the United States, with its primary place of busines S 26 llin Sioux Falls, South Dakota. Ana Barbara is informed and believes that Wells Fargo Bank, N_A. | ba 27 | provides Wells Fargo & Company’s personal and commercial banking services, and is Wells Fargo any 28 |& Company's principal subsidiary and under the control thereof. ee Ban wey cowFET AIG | G23 IRT pe1 32. Ana Barbara is informed and believes that defendant Arias is, and at all times 2 J relevant hereto was, an individual citizen ot the United States residing in Los Angeles County, 4 33. Ana Barbara is informed and believes that defendant Valdez is, and at all times 5 | relevant hereto was, an individual citizen of the LInited States residing in Orange County, 6 | California, 7 JURISDICTION AND VENUE 8 34, The amount in controversy in this action exceeds $25,000, exclusive of interest and | 9 | costs, 0 35, This Court has jurisdiction pursuant to Article VI, § 10 of the California | 11 | Constitution, because the Defendants have ample contacts with this jurisdiction which are sufficient 12 | to justify exercise of jurisdiction by this Court, and also pursuant to 15 U.S.C. § 1693m. 3 36. Venue ie proper in this county pursuant to § 395(a) of the California Code of Civil 14 | Procedure because Defendants Wells Fargo & Company, Wells Fargo Bank, N.A., and Arias 15 | contracted to perform obligations in this county, obligations were to be performed in this county, 16 [and Defendant Arias resides in this county. ” FIRST CAUSE OF ACTION i 1s (For Conversion, Against Wells Fargo, Arias, and Valdez) 9 37. Ana Barbara hereby incorporates by reference each of the allegations made in 20 | paragraphs | through 36 above, inclusive, as though fully set forth herein. a 38. Asset forth in paragraphs 3-7 above, inclusive, Wells Fargo created a corporate 22 | cutture and business model based upon its employees" improperly and fraudulently (a) setting up 23 | unauthorized accounts for its customers, (b) creating unauthorized online access for said employees 24 | to Wells Fargo customers’ accounts, (¢) engaging in unauthorized vnline uansactions with Wells <6 25.| Fargo customers’ accounts, (d) thereby without authorization causing funds to be taken from Wells 26 | Fargo customers’ accounts, and (e) using craft and guile to hide said activities from the Wells Fargo] TBE 9197 27 | customers affected by said activities, anu 2 39, Wells Fargo (through the activities of its employees, Arias, Valdez, and uther Wells | Sot ince, 9 AIBN | RAE we COMPLAINT Le4 = AGM 2 e EAR 20 2 n 2 2m 2s 26 2 as SULLIVAN WwricHr Gizen MCRAE we Faigo employees), without the knowledge or consent of Ana Barbara, took over $416,000 in funds fiom Ana Barbara’s accounts and caused it to be transferred primarily to Arias, with Wells Fargo yencraling for itself interest and fees thereby. It was Wells Fargo cmployces Arias and Valdez who} masterminded the setting up of the Fraudulent Credit Line, and Arias and other currently unknown Wells Fargo employees whu masteuuinded the setting up of the Fraudulent Card Accounts, all of /which vehicles were used by Arias to loot Ana Barbara's Wells Fargo accounts to the tune of over $416,000. Moreover: (a) it was Wells Fargo itself (including its computer aud other banking systems) which removed more than $416,000 of Ana Barbara's funds from Ana Barbara's accounts; (b) it was Wells Fargo itself which encouraged employees like Arias (o bring in new customers by hook or crook; (c) it was Wells Fargo itself which created the culture which encouraged employees like Arias and Valdez to set up unauthorized credit accounts in the name of unsuspecting Wells Fargo customers, and thereafter to engage in unauthorized transactions with said customers’ money 'while hiding said transactions from the customers; and (4) and it is Wells Fargo itself which [continues to refuse to repay to Ana Barbara the more than $289,000 remaining of funds stolen from her by its employees. 40. Asa result of her discovery of the theft of said $416,000 + from her Wells Fargo accounts, Ana Barbara was forced to cancel her concert tours to Mexico and Bolivia, and lost an additional $884,000 (approximately) of earnings. 41. Defendants’ acts of conversion have additionally caused Ana Barbara to suffer serious motional distress and the severe damaging of her eredit rating. 42. Defendants’ acts were undertaken intentionally and in conscious disregard of PlaintifP’s interests and rights. Moreover, Defendants’ acts were malicious, oppressive and/or froudulent. Therefore, Plaintiff should be awarded punitive and exemplary damages sufficient to punish Defendants and to deter similar conduct in the future. SECOND CAUSE OF ACTION (For Deceit, Against Wells Fargo and Arias) 43, Ana Barbara hereby incorporates by reference each of the allegations made in paragraphs | through 42 above, inclusive, as though fully set forth herein, 10 COMPLAINT= = AGT 20 2 n Fry 2s 6 2 44, Asset forth in paragraphs 3-7 above, inclusive, Wells Fargo created a corporate culture and business madel hased npon its emplayees’ improperly and fraudulently (a) setting up ‘unauthorized accounts for its customers, (b) creating unauthorized online access for said employees. (o Wells Fargo customers’ accounts, (c) engaging in unauthorized online tausactions with Wells Fargo customers’ accounts, (4) thereby without authorization causing funds to be taken from Wells Fargo customers’ accounts, and (¢) using craft and guile to hide said activities Grom the Wells Fargo customers affected by said activities. 45. Wells Fargo and its employee Arias lured Ana Barbara into setting up accounts at Wells Fargo, representing to her that Wells Fargo was a safe place for her to deposit her money. However, Wells Fargo knew that its corporate culture was such that its account customers were subject to frequent acts of abuse and unauthorized activity involving their account funds. Moreover, Wells Fargo’s employee Arias knew when he brought Ana Barbara to Wells Fargo as a customer, that her money would not be safe because he intended to utilize her Personal Identifiers, and his corrupt colleagues such as Valde2, to steal Ana Bérbara’s money from her accounts. As Wells Fargo’s employee, his knowledge must be imputed to Wells Fargo. 46. Wells Fargo and its employee Arias intended to deceive Ana Barbara, Wells Fargo set up its corporate culture for precisely the purpose of deceiving its customers into placing their money into insecure accounts, Wells Fargo’s employee Arias brought Ana Barbara to Wells Fargo as a customer precisely for the purpose of his improperly gaining access to her money deposited into her Wells Fargo’s accounts, As Wells Fargo’s employee, his knowledge must be imputed 0 Wells Fargo, 47. Ana Barbara relied upon the false representations made to her by Wells Fargo und is employee Arias, and opened accounts with Wells Fargo, entrusting a large amount of her money to ‘Wells Fargo. Given the prominence of Wells Fargo as an institution internationally, she was justified in so relying 48. Asa result of the foregoing, over $416,000 was looted from Ana Barbara by Wells Fargo, Arias. Valdez, and others, Valdez created a fraudulent series of accounts, thereby enabling Py 28 Ear SULLIVAN WricHr Giecro MCRAE we Arias fraudulently to remove over $416,000 from Ana Barbara's accounts at Wells Fargo. i ‘COMPLAINTm 2 ” 2 my 25 S16 e woo 49. Asaresult of her discovery of the theft of said $416,000+ from her Wells Fargo Jaccounts, Ana Barbara was forced to cancel her concert tours to Mexico and Bolivia, and lost an additional $884,000 (approximately) of earnings. 50. Wells Fargo’s and Arias’s deceit have additionally caused Ana Barbara to suffer serious emotional distress and the severe damaging of her credit rating. 51, Defendants’ acts were undertaken intentionally and in conscious disregard of Plaintil's interests aud tights. Moreover, Defendants’ acts were malicious, oppressive and/or fraudulent, Therefore, Plaintiff should be awarded punitive and exemplary damages sufficient to punish Defendants and to deter similar conduct in the future. THIRD CAUSE OF ACTION (For Negligence Against Wells Fargo) 1s made in 52, Ana Barbara hereby incorporates by reference each of the allega [paragraphs I through 51 above, inclusive, as though fully set forth herein 53, Welle Fargo, by undertaking to safeguard Ana Birbara’s money as her banker, assumed the obligation to exercise reasonable cure in handling her funds. $4, Wells Fargo failed to exercise reasonable care in handling Ana Barbara’s funds. As set forth in paragraphs 3-7 above, inclusive, Wells Fargo created a corporate culture and business [model baced upon its employees" treating customer accounts in a careless manner, withont regard tel safeguarding its customers’ interests. Indeed, by encouraging Wells Fargo employees to create ‘unauthorized accounts for its customers, by encouraging Wells Fargo employees to grant ‘themselves unauthorized online access to Wells Fargo customers’ accounts, by encouraging Wells Fargo employees to engage in unauthorized online transactions invalving Wells Fargo custamers? accounts, and by its general policy of allowing said transactions to occur, Wells Fargo created hothouse atmosphere wherein the scandalous tendencies of Arias and Valdez were nourished into full bloom, Wells Fargo failed to reasonably supervise the conduct of Arias and Valdez. Wells Fargo’s conduct in this case is the archetype of negligent behavior. 55, Wells Fargo’s negligence in handling Ana Barbara’s funds was the proximate cause any 8 | Siithan S| Watcer Agno Mere ue of the theft of over $416,000 from Ana Barbura’s accounts. Additionally, Wells Fargo’s, Arias’s 12 COMPLAINTand Valdez’s wrongful acts have caused Ana Barbara to suffer the serious damaging of her credit 2 |rating. 3 56. Asaresult of her discovery of the theft of said $416,000! from her Wells Fargo 4 [accounts, Ana Barbara was forced to cance! her concert tours to Mexico and Bolivia, and lost an 5 | additivinal $884,000 (approximately) of earnings. 6 57. Wells Fargo’s negligence has additionally caused Ana Barbara to suffer the severe 7 | damaging of her credit rating, 8 FOURTH CAUSE OF ACTION 9 (Damages Under 15 U.S. C. § 1693m(a) Against Wells Fargo) 0 58. Ana Barbara hereby incorporates by reference each of the allegations made in 1 | paragraphs 1 through 57 above, inclusive, as though fully set forth Lesein. 2 59, Byits allowing over $111,000 in unauthorized fund transfers to be made from Ana 13 | Barbara's Wells Fargo Personal Account without any wrongdoing on lier paut aud by failing fully 14 Jand timely to reoredit Ana Barbara's Wells Fargo Personal Account with said money, Wells Fargo 15 lism violation of 15 U.S. C. § 1693 er. seq. (the “Electronic Fund Transfer Act’). 16 60. Section 1693m (a) of the Electronic Fund Transfer Act provides that a financial 17 |institution in violation of the Electronic Fund Transfer Act is liable to a consumer for the actual 18 | damage (in Ana Barbara's case over $111,000) suffered by the consumer as a result of such 19 | violation, plus an amount of money up to $1,000, plus the consumer's costs of bringing suit against 20 | the financial institution including reasonable attorneys’ fees. 21 61. Asset forth in paragraph 27 above, on or about December 9, 2015, Wells Fargo 22 | through its in house counsel refused to provisionally reeredit wo Ana Bérbara’s accounts the 23 | remaining $289,000+ (net of the Wells Fargo Payment) stolen from lier by Arias, of which 24 |'$111,000+ was improperly transferred out of her Personal Account. This refusal was in violation of & 23 the Electronic Fund Transfer Act and continues to this day more Uran (wo months thereafter. 2% 62. In making this determination not to provisionally reeredit Ana Bérbara’s accounts, {27 | Wells Fargo failed to make a good faith investigation Ino the errors alleged by Aust Barbara but Fe auy 28 [instead simply chanted the mantra that Ana Barbara had failed timely to raise the issue of improper = haere 13 GT BEERS ap ‘COMPLAINT| Got » a m » a s Ss zon 28 transactions in her accounts after Wells Fargo’s dissemination of account statements relative thereto. However, had Wells Fargo bothered to make the most rudimentary investigation into Ana Barbara’s claims of unauthorized account transactions, they would have realized the account statements issued by Wells Fargo never were presented to Ana Rarhara but instead were diverted and/or intercepted by Wells Fargo’s criminal employee Arias. 63. Section 1693f (e) of the Electronic Fund Transfer Act provides that, in cirenmstances ]where a financial institution both (a) fails within 10 days of notice to provisionally recredit a consumer's account with monies erroneously transferred out uf drat account and (b) fails to make a good faith investigation of the alleged errors raised by the consumer, the consumer is entitled to treble the actual damage (in Ana Bérbara’s case the approximately $111,000 stolen from her Personal Account) suffered by the consumer. Thus, under § 1693f (e) of the Electronic Fund Transfer Act, Ana Barbara is entitled to treble damages from Wells Fargo of more than $333,000. 64. Thus, pursuant to § 1693m of the Electronic Fund Transfer Act, Ana Barbara is entitled to more than $333,000 in damages, plus an additional $1,000, plus Ana Barbara's casts of bringing suit against Wells Fargo including Ana Barbara’s reasonable attorneys’ fees. PRAYER Wherefore, Ana Barbara respectfully requests that the Court enter judgment in her favor andl against Wells Fargo, Arias, and Valdez as follows: 1. On the first cause of action, for damages in excess of $1,173,000 (according to proof) against Wells Fargo, Arias and Valdez. 2. Onthe first eause of action, for damages to Ana Barbara's credit rating against Well Fargo, Arias and Valdez. 3. On the first cause of action, for emotional distress damages against Wells Fargo, ‘Arias and Valdez. 4, Onthe cause of action, for punitive damages against Wells Fargo, Arias and Valdez. 5. On the second cause of action, for damages in excess of $1,173,000 (according to Ean sSuuLivan Wricer Gizen MCRAE ue proof) against Wells Fargo and Arias, 14 COMPLAINT6. Onthe sceond cause of action, for damages to Ana Barbara's oredit rating against Wells Fargo and Arias. 7. On the second cause of action, for emotional distress damages against Wells Fargo and Arias. 8. Onthe second cause of action, for punitive damages against Wells Fargo and Arias. 9, Onthe third cause of action, for damages in excess of $1,173,000 (according to proof) against Wells Fargo. 10. On the third cause of action, for damages to Ana Bérbara’s credit rating against Wells Fargo. 11, On the fourth cause of action, for damages in excess of $333,000 (according to proof) plus $1,000 against Wells Fargo, 12, For Ana Bérbara’s costs of suit herein including her reasonable attorneys’ fees. 13, For such other and further relief as the Court may deem just and proper. DEMAND FOR JURY TRIAL PLEASE TAKE NOTICE that Plaintiff Altagracia Ugalde Motta a/k/a Ana Barbara hereby 16 } submits this Demand for a Jury Trial in this matter. " 8 Respectfully submitted, 1 | Dated: June 29, 2016 EARLY SULLIVAN WRIGHT oot GIZER & MCRAE LLP n ~ 2 py | Up DEVIN A. MCRAE 2 Attomeys for Plaintiff a ALTAGRACIA UGALDE MOTTA A/K/A ANA BARBARA 2 3 Eg » wom ei = |Site om cee. COMPLAINT AAG | face weAa exwierr A"eo PURRUAN 6, Bie is AMOUNT 3EC0UE 7061035 Gos, nore STRATIVE FEE UPON JUDGERAENT z \ A j 4 ‘ 6 g| 2 | B p sl bs 16} ” MICHAEL, FEUER, City Attomey, SBN 111529 INO FEE Govt. Cote § 6103], TINA L. HESS, Assistant City Attomey, SBN 143900 SUZANNE V. SPILLANE, Deputy City Attomey, SBN 164476 IESSICA R._ BROWN, Deputy City Attorney, SBN 211642 JEREMY BERZON, Deputy City Attomey, SBN 241761 OFFICE OF THE LOS ANGELES CITY ATTORNEY. CRIMINAL BRANCH, COMPLEX & SPECIAL LITIGATION SECTION 200 North Main Street, 500 City Hall Fast May 04 2015 Los Angeles, California 90012-4131 Attomeys for Plaintiff, the People of the State of California Ds3 Seon F ClePelol SUPER COURT Dean STARE OF CAEARDRA ‘COUNTY OF LOS ANGELES, CENTRAL DISTRICT. BCS80778 ‘THE PEOPLE OF THE STATE OF } nna CALIFORNIA, Case Fitinkitt, } COMPLAINT FOR EQUITABLE 7 } RELIEF AND CIVIL PENALTIES FOR: ‘s ) . ) Gy VIOLATION OF THE CALIFORNTA ) UNFAIR COMPETITION LAW FOR 1G, 4 GAMING (Bus. and Prof. Code WELLS FAROO & COMPANY, a Delaware} §1790, ef seg); AND Corporation; WELLS FARGO BANK, , NATIONAL ASSOCIATION, a National} (@) VIOLATION OF THE CALIFORNIA Banking Association, and DOES 1-100, ) UNFAIR COMPETITION LAW FOR inclusive, } FAILURE TO PROVIDE NOTICE OF DATA BREACH (Bus. and Prof. Code Dees } §17200, er seq.) ) ) ‘3 , 4 } ~ 3 SSS . BA (COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES Telephone (313) 473-6922/Facsimile (213) 978-8112 ‘She Caner, Egypte Oice/Ctth Lualna’Pabint ty tna Gra DORIGINAL% $ Plaintif, the People of the State of California (“Pople”), complaining ofthe above- named Defendants (“Defendants”), alleges as follows, which allegetions are based upon information and belief: INTRODUCTION 1. For years, Wells Fargo & Company and Wells Fargo Bank, National Association (collectively “Wells Fargo”) have victimized their customers by asing pernicious and often illegal sales tactics to maintain high levels of sales oftheir banking and financial products. ‘The banking business model employed by Wells Fargo is based on selling customers multiple banking products, which Wells Fargo calls “solutions.” In order to achieve its goal of selling a high number of “solutions” to each customer, Wells Fargo imposes uncealistc sales quotas on its employees, and has adopted polices that have, predictably and naturally, driven its pankers to engage in fraudulent behavior to meet those unreachable goals. As a result, Wells Fargo’s employees have engaged in unfair, unlawful, and fraudulent conduc, including opening customer accounts, and issuing credit card, without authorization, Wells Fargo has known ahout and encouraged these practices for years. Tthas dane little, ffanything, to discourage its employees’ behavior and protect is customers; Worse, on the rare occasions when Wells Fargo id take action against its employees for unethical sales conduct, Wells Fargo further victimized its customers by failing to inform them of the breaches, refund fees they were owed, or otherwise] remedy the injuries that Wells Fargo and its bankers have caused, The result is that Wells Fargo thas engincered a virtual fee-generating machine, through which its customers are harmed, its employees take the blame, and Wells Fargo reaps the profits. 2. This isa civil law enforcement action brought on behalf ofthe People by the Criminal Branch of the Los Angeles City Atiomney's Offive, und te Unfair Competition Law ("UCL") Business and Professions Code § 17200, et seg.).! The People seek, inter alia: (a) to enjoin the above named Defendants from engaging in unlawful, unfair, and fraudulent business acts and practices; (b) an order to restore to all persons in interest any money or property the "All forther references are to California codes, unless otherwise noted COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES.u 1 33] 14 15) 16 1] 18) 19) 20) ai 2 Cad e ‘ 3 e above-named Defendants acquired by means of those unfair, deceptive, and fraudulent business ts and practices, pnrsnant to Business and Professions Code sections 17203 and 17204; (¢) an order that above-named Defendants be assessed civil penalties pursuant to Business and Professions Code sections 17206 and 17206.1; and (d) recovery of the casts of this action. 3. Defendant Wells Fargo & Company operates the fourth biggest bank in the ‘United States, and the largest bank headquartered in California. Itis California's oldest bank, having begun banking services in 1852. Wells Fargo Bank, National Association is a subsidiary of Wells Fargo & Company, and provides most af the hanking products and services that are the subject of this action, 4, Wells Fargo boasts about the averake number of products held by its customers, cunenily approximately six bank accounts or Gncial produets per customer. Wells Fargo seeks to increase this to an average of eight bank accounts or financial products per account holder, « company goal Wells Fargo calls the “Gr-cight” initiative. 5. Wells Fargo’s resulting market dominance has come at a significant price to the general public, because it has been achieved in large part through an ambitious and strictly enforced sales quota system. Wells Fargo quotas are difficult for many bankers to meet without resorting to the abusive and fraudulent tactics described further below. Moreover, Wells Fargo enforces its sales quotas by constant monitoring. Daily sales for each branch, and each sales employee, are reported and discussed by Wells Fargo’s District Managers four times a day, at 11:00 am, 1:00 p.m., 3:00 p.m., and 5:00 p.m. Those failing to meet daily sales quotas are approached by management, and often reprimanded and/or tald to “de whatever it takes” to meet ‘their individual sales quotas. Consequently, Wells Fargo’s managers and bankers have for years ‘engaged in practices called “gaming,” Gaming consists of, among other things. opening and manipulating fee-generaling customer accounts through often unfair, fraudulent, and unlawful ‘means, such as omitting signatures and adding unwanted secondary accounts to primary accounts ‘without permission. Other practices utilized as part of these “gaming” schemes have included misrepresenting the costs, benefits, fees, and/or attendant services that come with an account or product, all in order to meet sales quotas. 2 (COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES8 8 6. Wells Fargo’s gaming practices have caused significant stress to, and hardship and financial losses for, its customers. Specifically, Well Fargo "as: (a) withdrawn money from customers’ authorized accounts to pay for the fees assessed by Wells Fargo on unauthorized accounts opened in customers’ names; (b) placed customers into collections when the unauthorized! withiawals fiom customer accounts went unpaid; (c) placed derogatory information in credit reports when unauthorized fees went unpaid; (d) denied customers access t their funds while Wells Fargo stockpiled account applications; and (e) caused customers to purchase identity theft protection. 7. These gaming practices are so pervasive in Wells Fargo’s business model that some methods of gaming have even been given their own names. For example: a “Sandbagging” refers to Wells Fargo's 2ractice of failing to open accounts when requested by customers, and instead accumulating a number of account applications to be opened ata later date, Specifically, Wells Fargo employees collect manual applications for various products stockpile them in an ‘unsecured fashion, and belatedly open up the accounts (often with additional, ‘unauthorized accounts) in the noxt saleo reporting period, frequently before or after banking hours, or on bank holidays such as New Year's Day. b. “Pinning” refers to Wells Fargo's practice of assigning, withont enstomer authorization, Personal Identification Numbers (“PINs”) to customer AIM card ‘numbers with the intention of, among other things, impersonating customers on Wells Fargo computers, and enrolling those customers in online banking and online bill paying without their consent. © “Bunalling” refers to Wells Fargo’s practice of incorrectly informing customers that certain products are available only in packages with other products couch ac additional accounts, insurance, annuities, and retirement plans. 8. While Wells Fargo has ostensibly terminated a small number of employees who have engaged in gaming, other employees have been rewaréed for these practices, and even promoted, perpetuating the problem. Moreover, Wells Fargo has continued to impose the same 3 (COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIEScompanywide goals of attaining as many accounts as possible at any expense, thereby fostering the practice of gaming, Wells Fargo thus puts its employees between a rock and a hard place, forcing them to choose between keeping their jobs and opening unauthorized accounts. 9. Wells Fargo has also feiled to inform its customers when their personal information has been accessed or compromised as a result of Wells Fargo’s gaming practices, in breach of its statutory duties to do so, thus causing its customers additional harm. PLAINTIFF. 10. Plaintiff, the People of the State af California, brings this action hy and through Michael N. Feuer, City Attorney for the City of Los Angeles. 11, Pursuant to Business and Professions Code sections 17203, 17204, 17206 and 17206.1, the Los Angeles City Atlomey imay bring a civil action in the name of the People of the State of California to enjoin any person who violates, or proposes to violate, the LICL, and to obtain mandatory civil penalties for each act of untatr competition. DEFENDANTS 12, Defemlant Wells Fanyo & Company is, and at all times relevant hereto was, conporation organized and existing under the laws of the State of Delaware, with its principal place of busineas in San Franciseo, California. Wells Fargo & Company is a financial services company with $1.5 trillion in assets, and provides banking, insurance, investments, mortgage, and consumer and commercial finance through more than 9,000 locations, 12,000 ATMs, and thel Tntemet. It has approximately 265,000 full-time employees, and is ranked 29th on Fortune Mogazine's 2014 rankings of America’s 500 largest corporations. 13, Deferidant Wells Fargo Bank, National Association is, and at all times relevant hereto was, a national banking association chartered under the laws of the United States, with its primary place of business in Sioux Falls, South Dakota. Wells Fargo Bank, National Associatio provides Wells Fargo & Company's personal and commercial banking services, and is Wells Fargo & Company's principal subsidiary. 14, The true names and capacities of Defendants sued herein as DOES 1 through 100, inclusive, are unknown to the People, who therefore sue said Defendants by such fictitious 4 COMPLAINT FOX EQUITABLE KELIEK AND CIVIL PENALTIES,% 8 names. When the true names and capacities of satd Dotendants have been ascertained, the People will ask leave of the Court to amend this Complaint, and to insert in licu of such fictitious ‘names the true names and capacities of said fictitiously named Defendants. The People are informed and believe that DOES 1 through 100 participated in, and in some part are responsible for, the unlawful business acts and practices and other violations of law alleged herein, 15. Atall relevant times, each Defendant was acting as an agent, servant, assignee, representative, partner, joint venturer, co-conspirator, or employee of the other Defendants, and, in doing the acts alleged hercin, was acting within the course and se0pe of said agency, service, assignment, representation, partnership, joint venture, conspiracy, or employment. Due to the relationship between Defendants, each Defendant has knowledge or constructive notice of the acts of each of the other Defendants. 16, Each Defendant is a “person” within the meaning of Business and Professions |Code section 17201. 17. Inthis Complaint, when reference is made to any act or omission of a Defendant, such allegations shall include the acts.and omissions of owners, officers, directors, agents, Jemployees, contractors, vendors, affiliates, and representatives of said Defendant while acting within the course and scope of their employment or agency on behalf of said Defendant. JURISDICTION AND VENUE 18, Venue is proper in this county pursuant fo Business and Professions Code section: 17204 in that violations alleged in this Complaint occurred in the City af Tos Angeles and the County of Los Angeles. The Court has jurisdiction pursuant to Article VI, section 1U of the California Constitution and section 393 of the Code of Civil Procedure, GENERAL ALLEGATIONS 19. To the extent that the fallowing descriptions inchide specific examples, they are provided for purposes of illustrating the operation of Wells Fargo’s illegal activities, with no intention of limiting this action to these specific examples. w 7 COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIESWells Fargo’s Quota — Driven Business Modet 20. Wells Fargo’s modus operandi is to attempt to get each customer to maintain numerous accounts with Wells Fargo. In a brochure published by Wells Fargo called “The Vision & Values of Wells Fargo,” Wells Fargo states: ““Going for gr-eight.’ Our average retail banking household has ahont six products with us. We want to getto eight. and heyond. One| of every four already has eight or more. Four of every 10 have six or more.” 21. Inits 2014 Annual Report to the U.S. Securities and Exchange Commission, Wells Fargo boasts about its “products” per customer and its “cross-sell strategy”: “Our vision is to satisfy all our customers’ financial needs, help them succeed financially, be recognized as the premiet financial services company in out matkets and be one of Ametica’s great companies. Important to our strategy to achieve this vision isto inerease the number of our products our customers use and to offer them all ofthe financial products that fulfill their financial needs.” That report further states: “Our cross-sell strategy is to increase the number of products our customers use by offering them all of the financial products that satisfy their financial needs” 22. Wells Fargo further stated in its 2014 Annual Report to the U.S. Securities Exchange Commissi ‘ve continued to maintain our solid customer relationships across the ‘Company, with retail banking household cross-sell of 6.17 products per household (November 2014), Wholesale Banking cross-sell of 7.2 products per relationship (September 2014); and ‘Wealth, Drokerage and Retirement cross-sell of 10.49 products per retail banking houschold (November 2014).” Wells Fargo further stated in that same filing: “We believe there is more Jopportunity for cross-sell as we continue to eam more business from our customers. Our goal is eight products per household...” 2% Inarder ta achieve its gnal of eight accounts per househald, Wells Fargo pnts unrelenting pressure on its bankers to open numerous accounts per customer. 24, Wells Fargo has strict quotas regulating the number of daily “solutions” that its bankers must reach, these “solutions” include the opening uf all new banking and credit card accounts. Managers constantly hound, berate, demean and threaten employees to meet these ‘unreachable quotas. Managers often tell employecs to do whatever it-takes to reach their quotas. ‘ COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES10| u 19] 14] 15] 14 1 18} 19 20) ay % 8 Employees who do not reach their quotas are often required to work hours beyond their typical ‘work schedule without being compensated for that extra work time, and/or are threatened with termination 25. The quotas imposed by Wells Fargo on its employees are often not attainable because there simply are not enough customers who enter a branch on a daily basis for ‘employees to meet their quotas through traditional means. 26. Wells Fargo’s bankers are thus naturally and predictably forced to resort to altemative means to meet quotas, iochiding using high pressure sales tactics to coerce customers into opening additional accounts or using inaccurete or misleading information about potential accounts to induce customers to open them. + 27, Wells Fargo employees also pressure their own family members and friends to sign up for accounts to meet their quotas. Some employees report that they have “tapped out” every family memher and friend for accunts. Others report that they spend holiday dinners trying to convince family members to sign up for accounts. Management encourages employees to achieve “solutions” through family memibers. Since these accounts are opened by friends and family as favors, they are often unfunded, and can result in fees charged by Wells Fargo to its ‘own employees’ families or acquaintances, even for such “zero balance” accounts. 28. Employees thus resort to gaming tactics to increase their “solutions,” and meet ‘minimum quotas. Gaming is so ingrained in the business of Wells Fargo that many of the tactics| ‘employed to meet these sky-high quotas have commonly-used names. “Bundling” 29. Inthe practice known at Wells Fargo as “bundling,” its customers are told that thel ‘account or product they seek can be obtained only with the purchase of additional accounts or products, when, in fact, Whe desired product is available on its own. In many instances, 5|| employees are coached by management to ensure that every checking account is sold with three ‘other products also known as a “packed” aocount, Employees were, and arc, instructed by ‘management to lie to customers by telling them that each checking account automatically. comes 1 COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES10 u 1 13] 14 15 10] 17] 13 19] Gaal with a savings account, credit card, of other product such as life insurance, and/or “Express Send” (an online program that allows customers to send money to forcign countries). 30. When customers discover an unauthorized account and inquire of Wells Fargo about it, they are often informed that the products and services came with the authorized accounts automatically. Even in the face of customer complaints, the “bundling” continues. 31. Customers who complaint about veceiving credit cards they did mot request are advised by Wells Fargo to simply destroy the unrequested and unauthorized cards. However, simply destroying these unauthorized cards does not close the account nor repair the impact to @ customer's credit profile. “Pinning” 7 Inthe practice knawn at Wells Pargo as “pinning,” a Wells Fargo banker obtains a debit card number, and personally sets the PIN, often to 0000, without customer authorization. “Pinning” permits a banker to enroll a customer in online banking, for which the banker would reéeive a solution (seles credit). To bypass computer prompts requiring customer contact, information, hankers impersonate the enistomer online, and input false generic-email addresses such as 1234(@wellsfargo.com, noname(@wellstargo.com, or none(@wellstargo.com to ensure that the transaction is completed, and that the customer remains unaware of the unauthorized activity. “Sandbagging” 33. In the practice known at Wells Fargo as “sandbagging,” a banker delays opening new ascouints or processing a sale, unbeknownst to the account holder, until a time that is most beneficial, such as when a new sales reporting period commences. 34 “Sandbagging” is common at Wells Fargo. “Sandbagging” often occurred on New Year's Day, or at the beginning or a sales reporting period. New Year's Day was an 5 || especially common date to open “‘sandbagged” accounts, because Wells Fargo ran a sales [program called “Jump into January.” In this Wells Fargo program, its bankers were required to [meet even more aggressive sales goals than usual. As a result, bankers were encouraged to hold Jonto, or not to process, new accounts or other requests until January 1. In fact, some employees COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES9) 10} u 12) 8 14] 4 16| 4 18} 9 20! a 22| 2 E24) Mos F e26 stn en Pe /were required to ist or contirm the accounts they would open on January 1 before January 1. This permitted Wells Fargo to report inflated First Quarter sales. 35. When customers inquire about why an account was not opened timely, they are given false explanations including: (a) a computer system failure or similar technical problem; (b) an oversight and the account would be processed immediately; and/or, (c) a mistake that would take time to correct Other Gaming Tactics 36. Because of Wells Fargo's on going setting of unrealistic sales goals, Wells Fargo employees have engaged in, and continue to engage in, other gaming tactics, including: 4 Making misrepresentations to customers to get them to open additional accounts such as falsely stating: “you will incur a monthly fee on your checking account until you add a savings account.” b. _-Misrepresenting that additional accounts do not have monthly fees, when they actually do incur such fees. ©. Referring unauthorized, and therefore unfunded, accounts to collections because Wells Fargo’s practices cause the accounts to have negative balances. 4. ‘Targeting individuals holding Mexican Matriculada Consular cards because the lack of a Social Security Number makes it easier to open numerous fraudulent accounts. Wells Vargo employees provide false information to ‘complaining customers, and advise many of these victims to ignore the ‘unauthorized fees and letters from collection agencies because the lack of a Social Security number means the debt will not affect them, & Advising customers who do not want credit cards that they will be sent a ‘credit card anyway, and to just tear it up when they receive it. Customers? Discovery of Gaming and the Harm it Causes 37. Customers who have discovered unauthorized accounts often make the discovery accidentally. For instance: (a) unexplained money being withdrawn from antharized accaunts to fund unauthorized accounts; (b) mailings from Wells Fargo congratulating a customer on. ’ (COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES.oo] 10} a) n 13] 14| 15 16} ” 18) 15| 20) 21 22) 23] 24) “ys G26] etn Shas Zo oe % $ opening a new account the customer does nat recognize, or asking a customer to update account information for accounts that the customer does not recognize; (c) calls from collection agencies stating the customer is overdrawn on an account that the customer does not recognize; and (d) discovering that checks a customer intended to be deposited into an authorized account do not appear in monthly statements because the checks had instead been deposited into an ‘unauthorized account 38. Customers have been prejudiced in numerous ways by Wells Fargo’s gaming: (a) ‘customers loge money to monthly service fees charged for unauthorized accounts; (b) customer accounts are placed into collection, forcing customers to fight with debt collection agencies for fees charged by Wells Fargo on unauthorized accounts; (c) customers? credit reports are affected) ‘impacting job applications, loans for automobiles, and mortgage applications; and (4) customers are forced to purchase costly identity theft protection services to ensure against further fraudulent activities, But for Wells Fargo’s quota-based business model, its customers would not have incurred wrongful fees, been put into collections, suffered derogatory references on their credit reports, or forced to purchase identity theft protection 39. Customers’ unauthorized accounts remain open, despite repeated customer requests to Wells Fargo to close those accounts, 40. Customers have difficulty reporting unauthorized activity. Reaching the correct representative is no guarantee the unauthorized account will be remedied, as complaining customers often never receive retum calls from Wells Fargo. ° Wels Fargo’s Knowledge of Gaming and its Cosmetic Foxes 41. Wells Fargo knew, or in the exercise of reasonable care should have known, that its eaployees open unautlwrized auxounts. For example & Customers often enter Wells Fargo’s branches to complain about ‘unauthorized accounts; many vietims have even contacted Wella Fargo ‘management by telephone. Wells Fargo has access to, and frequently monitors, ations taken on its ‘computers by employees. Wells Fargo has been put on notice by unusual activity 10 (COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES24) “bs G26 gta ze g % 8 such as: numerous accounts Being opened on lanuary 1, a bank holiday; mumerou unfunded accounts; frequent reopening of closed accounts; and customer accounts with the only account activity being Wells Fargo fees. ©. Wells Fargo requires that all new customer accounts be approved by a branch manager or assistant manager, thereby providing Wells Fargo mangement with a clear record of the number and types of accounts opened for each customer, 4. Wella Forgo is alo evar its daily, weekly and monthly quotas aro unrealistic for employees during normal working hours, since they have generated rumerous complaints and lawsuits by employees ©. Online banking accounts are often opened by Wells Fargo with obviously false customer contact information such as noname@wellsfergo.com, £. Wells Fargo has terminated and/or otherwise disciplined a number of employees for gaming, but far fewer than have actually engaged in the practices, given Wells Fargo’s widespread imposition ofthe quota system, 42. Despite Wells Fargo’s knowledge of gaming by its employees, it has done ltl, i anything, to terminate these practices, nor to reform the business model it created that has fostered them. While Wells Fargo has made a few minor changes to it policies, and has terminated a handful of employees, those efforts have been, at most, cosmetic, and ultimately [benefit Wells Fargo by providing them with plausible deniability. However, the policies that encourage these tactics continue, and employees who engage in them continue to be rewarded monetarily, and even promoted. Wells Fargo har not altered its quota system, nor hae it reduced the pressure it has applied to its management and employees to reach their quotas, and the gaming that has been its inevitable result. STATUTORY AND REGULATORY BACKGROUND, Laws Relating 10 Identity Theft 43. California has strict laws against snaking false Ginancial statements, u COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES10 u vy 13] 14] 15] "e $ 44, ILis unlawful to use another's personal data for illegal purposes: “(E]very person who willfilly obtains personal identifying information of another person, and uses that information for any unlawful purpose, including to obtain, or attempt to obtain, credit, goods, services, real property, or medical information without the consent of that person, is guilty of a public offense . ..” (Penal Code § 530.5(a).) Pursuant to the Penal Code: “personal identifying information” includes “name, address, telephone number, health insurance number, taxpayer identification number, school identification number, state or federal driver’s license, or identification number, sacial security number, place of employment, employee identification ‘number, professional or occupational number, mother’s maiden name, demand deposit account ‘umber, savings account number, checking account number, PIN (personal identification number) or password, alien registration number, government passport number, (and) date'of birth ® (Penal Code § 530 55(6)) Laws Relating to Computer Data Breaches 45. In Califomia, ifa business is in possession of “computerized data that includes personal information,” drat business “shall disclose any breach of the security of the systein {following discovery or notification of the breach in the security of the data to any resident of ‘California whooc uncnerypted personal information was, or is reasonably believed to have been, acquired by an unauthorized person.” (Civil Code § 1798.82(a)). “[PJersonal information” includes: “[a)n individual's first name or first inital and last name,” along with one or more of the following: Social Security number; driver's license number or California identification card /number; account number, credit or debit card number “in combination with any required security| code, access code, or password that would permit access to an individual's financial account,” medical information; or health insurance information. (Civil Code § 1798.82(hY(1),) “Personal information” also includes: “[a] user name or email address, in combination with a password or security question and answer that would permit access to an online account.” (Civil Code § 1798.82(h)(2).) For purposes of this law, “breach of the security system” refers to “unauthorized| acquisition of computerized data that compromises the security, confidentiality, or integrity of personal information maintained by the person-or business.” (Civil Code § 1798.82(e),) 2 COMPLAINT FOR EQUITABLE RELIEF AND CLVIL PENALTIES46, Its illegal to knowingly access and without permission use “any data, computer, computer system, or computer network in order to either (A) devise or execute any scheme or artifice to defraud, deceive, or extort or (B) wrongfully control or obtain money, property, or data.” Penal Code § 502(6\1)) 47. Furthermore, it is unlawful to knowingly access and without permission: “take(), coply}, or makef] use of any data from a computer, computer system, or computer network... whether existing or residing internal or extemal to a computer, computer system, or computer network.” (Penal Code § 502(¢)(2),) . 48 Under the California Penal Code “the word ‘persor neludes a corporation as ‘well as a natural person.” (Penal Code § 7). 49. Pursuant to the Gramm-Leach-Bliley Act, 15 United States Code section 6801, et seq, and the rules and regulations promulgated thereunder, financial institutions have a duty to keep and protect the personal information of their customers from unauthorized access or misuse! ‘When an “institution determines that misuse of its information has occursed ar is reasonably possible, it should notify the affected customer as soon as possible, (70 Fed. Reg. 1575; 12 cl . Part 30, App. B.) ENFORCEMENT AUTHORITY Business and Professians Cade sectian 17200, et seq. 30. “Unfair competition” is defined in Business and Professions Code scetion 17200 as “any unlawful, unfair or fraudulent business act or practice,” and any act prohibited by Chapter 1 (commencing with Section 17500) of Part 3 of Division 7 of the Business and Professions Code. $1, Pursuant to Business and Professions Code section 17206, any person who ‘engages, has engaged, or proposes to engage in unfair competition shall be liable for a civil penalty not to exceed $2,500 dollars for each violation, 52 Pursuant to Business and Professions Code section 17203, any person who ‘engages, has engaged, or proposes to engage in unfair competition may be enjoined in any court ‘of competent jurisdiction, and the court may make such orders or judgments to prevent the use of 1 COMPLAINT FOR EQUITADLE RELIEF AND CIVIL PENALTIES19) un 1 13] 14 15} iT 1 13| 19| 2g a1 2 23] ced uh 25] Be26 a hae wl % 8 any practice which constitutes untair competition, or as may be necessary to restore to any person in interest any money or property which may have been acquired by means of such unfair competition. 53. Pursuant to Business and Professions Code sectioin 17205, the remedies or penalties provided for violations of the UCL are cumulative to each other, and to the remedies or penalties available under all other laws of the state. FIRST CAUSE OF ACTION VIOLATION OF THE UNFAIR COMPETITION LAW (“UCL”) ‘AGAINS: )EFENDANTS (“G, ZI (Califomia Business and Professions Code § 17200, et seq.) 54. The People reallege and incorporate hercin cach and every allegation set forth in paragraphs 1 through and including $3 above, as though set forth fully herein, 85. Beginning on.a date unknown to the People, but within the four years preceding, the filing of this Complaint, Defendants and Does 1-100, and each of them, have violated and conspired to violate the UCI hy engaging in one or more of the following unlawful business acts| and practices, among others: a. Willfully obtaining perconal identifying information of another person (which includes name, address, telephone number, health insurance number, taxpayer identification number, school identification number, state or federal river's license or identification number, Social Security number, place of ‘employment, employee identification number, professional or occupational number, mother's maiden name, demand deposit account number, savings account number, checking account number, PIN or password, alien registration number, government passport number, and date of birth), and using that information for an unlawful purpose, including to obtain or attempt to obtain credit, goods, services, real property, or medical information without the consent of that person, in violation of Penal Code section 530.5, subdivision (a) M COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES10) u 1 13] a4 13 16 17] 18| ig 20| 2 % 8 b. Being # party to any traudulent conveyance of any contract or conveyance! had, made, or contrived with intent to deceive and defraud others, or while being 4 party to any fraudulent conveyance of any contract or conveyance, wittingly and willingly putting in, using, avowing, maintaining, justifying, or defending the fraudulent conveyance of any contract or conveyance as true and done, had or ‘mada in good faith, or upan goad consideration, in violation af Penal Code section $31 ¢. Knowingly accessing and without permission using data, computers, ‘computer systems, or computer networks to execute a scheme to defraud or \wrongfilly obtain money, property, or data, in violation of Penal Code section 502, subdivision (¢)(1). 4, Knowingly accessing, and without permission taking. copying, or making, use of customer information, in violation of Penal Code section 502, subdivision (0) ©. Knowingly accessing, and without permission taking, copying, or making use of customer information, in violation of 15 United States Code section 680, et 26g, and the rules and regulations promulgated thereunder. 56. Beginning ona date unknown to the People, but within the four years preceding, the filing of this Complaint, Defendants and Does 1-100, and each of them, have violated and conspired to violating the UCL by engaging in one or more of the following unfair business acts and practices, among others: a. Threatening incipient violations of the aforementioned California laws and] violated the public policy embodied in and spirit of those laws. ». Violating the established public policy of the State of California, which, among other things, seeks to ensure that: all monetary contracts are duly aullirized by each paity, all bank accounts are authorized and ayseed (w by the ‘customer in whose name the bank account is oyened; residents of the state are not ‘harmed in their credht reports by acts not actually pertormed, or debts not actually as (COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES1d n 2 13 14 15 16 1 13 15] 20 i 2 2 24 Sos & 626) sz haa Eg 37 the filing of this Complaint, Defendants and Does 1-100, and each of them, have violated and ‘conspired to violate the UCL by engaging in one or more of the following fraudulent business acts and practices, among others: incurred, by that resident; personal informat n of an individual is not impropetly objained and used for an unlawful purpose; and that when personal information is| obtained without authority, that the person whose information was obtsined is informed immediately. c. _Defendants" conduct as described in this Complaint has been immoral, unethical, oppressive and unscrupulous in that Nefendants: (1) profit hy improperly signing customers up for bank accounts to which the customers did not agree; (2) boast about ihe average number of accounts per customer they have achieved, knowing that many of those accounts were unauthorized; (3) expose the consumer to financial hardships invalving unjustified debt collection and negative credit reporting, thus jeopardizing those customers’ ability to obtain mortgages, ‘automobile loans, and cmployment; and (4) otherwise gamcred an unfair advantage over lawfully competing businesses. Wells Fargo’s acts and practices alleged in this Complaint have had, and continue to have, a substantial detrimental impact upon its customers and the community. This detrimental impact is not outweighed by any countervailing. reasons, justifications, and motives of Wells Fargo. In short, the harm experienced by the customers and the surrounding community far outweighs the utility of Wells Fargo’s conduct Beginning on a date unknown to the People, but within the four years preceding 2. Using misrepresentations, deception, and concealment of material information to open unauthorized accounts in customers’ names. b. Using misrepresentations, deception, and concealment of material information to view customers’ personal inforination, and dhem failing to reveal to the customers that their personal information was compromised. 16 COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES@ EBB Ss Sea RRESSE SES 8107/80/98 Tareas SECOND CAUSE OF ACTION: yy ‘THE UNFAIR COMPETITION LAW (“UCL”) AGAINST ALL DEFENDANTS (FAILURE TO PROVIDE NOTICE OF DATA BREACH) (California Business and Professions Code § 17200, et seq.) 58. The People reallege and incorporate herein each and every allegation set forth in paragraphs 1 through and including, 53 above, as though set forth fully herein. 59, Beginning on a date unknown to the People, but within the four years preceding the filing of this Complaint, Defendants and Does 1-100, and each of them, have violated and conspired to violate the UCL by engaging in one or more of the following unlavfil business acts and practices, among others: a Being a business hal owns or licenses computerized data tat includes personal information, and failing ta diselase hreaches af the security of the system containing that data following discovery or notification of the breach bby an unauthorized person, in violation of Civil Code section 1798.82, subdivision (2). Failing to provide their customers with notice of any misuse of their customer information, as required by 15 United States Code section 6801, ef seq., and the rules and regulations promulgated thereunder. 60. Beginning on a date unknown to the People, but within the four years preceding the filing of this Complaint, Defendants and Does 1-100, and each of them, have violated and conspired to violate the UCL by engaging in one or more of the following wfair business acts and practices, among others: 2. Threatening incipient violations ofthe aforementioned California laws, and violating the public policy embodied in, and the spirit of, those laws ». Violating the established public policy of the State of California, which, among other things, seeks to ensure that: all monetary contracts are duly authorized by each party; all bank accounts are authorized and agreed to by the customer in whose name the bank account is opened; residents of the state 1 ‘COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES ees SS SSS ee1 aré'not harmed in their credit reports by acts not actually performed, or debts B not actually incurred, by that resident; personal information of an individual is 3 ‘not improperly obtained and used for an unlawful purpose; and that when 4| personal information is obtained without authority, thatthe person whose 3 information was obtained is informed immediately. “6 . Defendants’ conduct as described in this Complaint has been immoral, 7 ‘unethical, oppressive and unscrupulous in that Defendants: (1) profit by 8 improperly signing customers up for bank accounts to which the customers A id not agree; (2) boast ahont the average mmber of accounts per enstomer 1d they have achieved, knowing that many of those accounts were unauthorized; u (3) expose the consumer to financial hardships involving unjustified debt 13] collection and negative credit reporting, thus jeopardizing those customers’ ny ability to obtain as mortgages, aitamabile loans, and employment; and (4) 4 otherwise garnered an unfair advantage over lawfully competing businesses. 15] 4, Wells Fargo’s acts and practices alleged in this Complaint have had, and 16 Continue to have, a substantial detrimental impact upon its customets and the | 7 community. ‘This detrimental impact is not outweighed by any countervailing 18 reasons, justifications, and motives of Wells Fargo. In short, the harm i 19 experienced by the customers and the surrounding community far outweighs | 20 the utility of Wells Fargo's conduct. a 61. The acts of unfair competition of Defendants and Does 1-100, and each of them, 29|| present a continuing threat ta the puiblie’s health, safety, and welfare, and the Peaple have na ° 23|| adequate remedy at law. Accordingly, unless Defendants and Loes 1-100 are permanently ‘G:24]] enjoined and restrained by order of this Court, they will continue to commit acts of unfair ‘3 competition, and thereby continue to cause ireparable harm and injury othe public's health, FC26]| safety, and welfare. PRAYER FOR RELIEF Wherefore, the People pray that: a 48 ‘COMPLAINT FOR EQUITABLE RELIEF AND CIVIL PENALTIES er19] i vn 13) ul 16 17] 18) 19 20} a % 8 1 Pursuant to Business and Professions Code sections 17203 and 17204, and the equitable powers of the Court, Defendant Wells Fargo and DOES 1 through 100, together with their officers, employees, servants, agents, partners, associates, representatives, contractors, and all persons acting on behalf of or in concert with them, be enjoined from engaging in the ‘unlawful, unfair, and fraudulent business acts and practices described in this Complaint; be ‘ordered to comply with all laws and regulations concerning the opening and maintaining of bank accounts; and be required to'take such actions, and adopt such measures, as are necessary to prevent Defendants from engaging in further such acts or practices. 2. Pursuant to Business and Professions Code sections 17203 and 17204, Defendants bc ordered to restore to all persons in interest any money or property they acquired by means of ‘the unlawful, unfair, and fraudulent busiiess acts and practices in this Complaint. 3. Pursuant to Business and Profestions Code section 17206, Defendants be-accesced 2 civil penalty of $2,500 for each violation of the UCL that they committed, caused, aided and abetted, or conspired to cammit. 4, Pursuant to Business and Professions Code section 17206.1, Detendants also be assessed a civil pénalty of $2,500 for each violation of the UCL that they committed, caused, aided and abetted, or conspired to vomit, egains senior citizens or disabled persons. 5. The People recover the costs of this action, 6. ‘The People be granted such other and further rclicf as the Court may deem to be just and proper. Dated: May 4, 2015 MICHAEL N. FEUER, City Attomey TINA HESS, Assistant City Attomey SUZANNE V. SPILLANE, Deputy City Attomey JESSICA B. BROWN, Deputy City Attorney. IFREMY BFR7ON, Deputy City Attorney OFFICE OF THE LOS ANGELES CITY ATTORNEY CRIMINAL BRANCH COMPLE} ICIAI; LITIGATION SECTION By: SUZANNESPILLANE ‘Attorneys for Plaintiff, The People ofthe Sta of California 19 COMPLAINT FOR RQUITARLR RELIEF AND CTVIL PENALTIES ~wo 3 . TREY OA FATT OTE TORY fos Bt aT rar eo TINA HESS, Assistant City Attorney, (SBN 143900) SUZANNE V. SPILLANE, Deputy City Attorney, (164476) 200 North Main Stest S00 Clty Hall Ens, Los Angeles, CA. 90012 FILED TELEPHONE NO. FARO: yr Ggurt af Calitomis pepo aoe sate, eas ra aa nga Sorento BONN YS a vat 04 208 Secrest a ere . SSocecte pba dep ermeyptreonno ‘CASENAME: People v. Wells Fargo & Company, etal Bice dant i eiiense oon eer Tai Gan Oegaion fe ee Cotmited, (7) Counter [—] Joinder Te aa au Flag win tet appearance by defendant [a $7009 oon) Bei ben (Gal Ruesorcounsniesdoz) | cm BOS807 8 Meme 1-6 below must be completed (600 inainscton® pogo. [7 Gheck one box below forthe case type thal best describes this case: ‘Auto Tort ontrack froulsionaly Complex Civ Ligation An TJorceunotconauimaranty (8) (Cal Mules of Cour ves 3406-9:49) insures tr (8) (re 740 cotectons 8), [| anivusriee easton 03) Giver PUPOND (Personal unlPrpery Jones caccane ay (SJ cencteton deer (10) ‘namagenrenghi eat) 108 [Jinerance coverage (18) (Gnas ono) Dartesins os) Dormer conact i) (securities itvan cs) (rede ity 24 Real Property (S Frwienmentarese ot (30) q (Plies malpactze 5) riven donsivinvese testes coverage cs ating tom a} (Sone riomo ea ee ‘bove lstespovtonaly comply care > Nom iborwo (omen Tor Wear evicon 03 tees at Business tuna business pesctze (7) [J Othe eal proce 26) Enforcement of Judinent civ rights (08) Unlaveul Detainee Entercement of ivdoment (20) osamaten (3) Colonel 3) sigcolaneous Chi Complaint ern) CS recicons 23) arco ren Tiree prope 5) Tlowge a) oer complain (not sscieg stove (2) (Grratessontngtgence 25) “it Review ‘izeaaneous Ci Petition (Slower noneurcin (35) a aseetionoae (o) a Ponerenp and eopcte governance (21) Employment ( potiion ro: aroiraton awars (11) — ) other petition (not specited above} (#3) [1 Wrong mination (8) (Swi of mann 02) other empijment (5) (TJotrer i review 09) _ Z this case.) 1s [c]is nek complex unger te $00 ote Caiforia Rule of Court the casei Corplex, mark he {acters recuiina exceptional judicial management: a. LJ Large number of separately represented parties d. [] Large number of witnesses b. Gq) Extensive motion prective vaisinng uiffuull ut novel e [=] Coordination with retatea actions pensing in one ormore Couns: issues that willbe time-consuning to resolve inate counties, sales, a emus, ovina federal cout ¢. [2] Substantial amount of dcumertary evidence _f, (} Substanialposjudgment judicial supersion 3. Kemedies sought (check ail hat apply): 2. (X_] monetary b. (X_] nonmonetary. declaratory or injunctive relief c. |__J punitive 4. Number ot eautes of acon (speci: Two 5. The caco (} ie Ge) ienot actos eaten ava ittner are anv known lle cases, fle and serve wre of elated 5 saloon 8.018) Date: May 4, 2015 Suzanne V_Spllane, Depury City Anorney » Suzanne V. Seltiane, Pega SopiAomey —___ Near OAT TORTIE i WOTIGE Pein must file this cover sheet withthe fist pape fled in Ue auton w procieing (except smal claims cases or cases feo "under the Probate Code, Famly Cade, or Wellae and institutions Code) (Cal. Rules of Cour, rule 3,220.) Failure to file may resul in sanctions = Ete hic cover shect in adalion to any cover sheet reauiced by aca court ile 4 his case is complex under rule 3 400 et seq. othe California Rules of Cour, you must serve a.copy of this cover sheet on all =p pales it acon oy procewang Unless thi a colectons care under rue 3.740 oro comolex cat. his cover sheet wil be ured for sais! purposes oy rename = GIviL CASE COVER SHEET Be, Tahara bea etsy ag saeco 37 (Srateten om 1201 Soe ana soon 22 28To Plaintiie and Othere Filing Fleet Papere. If you are ting 9 fect poper (tor example, a complaint) in @ civil case, you must comaete and file. along with you fst paper, the Cia! Case Cover Sheet contained on page 1. This information wil be used to comple slatstes about ie fypes and numbers of cates tied. You must complete ilems 1 through 6 on the sheet. In item 1, you must check ‘one hor for the case type that best describes the case_ the case fis both 2 general and a more specive ype of cake lated in tem 1, check the more specific one, If the case hes multiple causes of action, check the box that bes indicates the primary cause of ation ‘To assist you in compleung the sneer, examples of te cases nal Delong under each case lype in sem 7 af@ provided below. A cover sheet must be filed only with your initial pape. Failte to flea cover sheet with he frst paper fled ina civ ease may subject party, ts Counsel, or both to sanctions under rules 2.30 and 3.220 of the Calforma Rules of Court, To Parties i Rule 3.740 Collections Cases. A “collectons case” under rue 3.740 is defined as an action for recovery of money owed iva sum stale tobe certain tha s net more than $25,000, exclusive of niet anv atone fon, esing from a trareacton in which propery, services, or money was acquired on credit. A collections cate does not include an action eecking the folowing: (1) tor demeges, (2) punive damages, (0) recovery af eal property, (4) cevovery of personal rupeily, ot (5) « prejudyrneay wil Of allaciment ‘The identication ofa case as a rule 3.740 collections case on ths form means that it will be exempt fom the general time for sence ‘requirements and case management rues, unless a delendant files a responsive pleading, A rule 3 740 collections case wil be subject to the requirements for service and obtaining a judgment in nde 3.740 To Parties in Complex Cases. In complex cases only, parties must also use the Civil Caso Covor Sheet to designate whether the case is complex. Ife lanl bebeves the case is complex under rule 3.400 ofthe Califoria Rules of Court, this must be indicated by completing he appropriate boxes in lame 1 and 2. i plait designates a cata a8 complex, tne cover cheet muct be terved with the complaint on all partes tothe action. A defendant may fle and serve no later than the time of ils frst appearance a joiner in the Plainuirs designation, a counter-cesignaton inate case s not complex, oF, Ihe plait has made no designation, a designation that the case is complex Auto Tort uo (22)—PersonaljuyiPrepery DamageNWrongfl Dea Uninsured hoist (46) te Iolo enim euboct to tivation. check hs tem Instoos of ae) ther PIBDIWD (Personal injury! Property DemagehWonytel Beat) Tor 'ASDes0s (U8) ‘Asbestos Property Oamoae ‘Asbestos Persoral iu? Product Labi (of asbestos or toxitereteamentel (4) Medical Malpractice 45) ‘Nestea! apace Physiciane & Surgeons Othe: Professional Heath Care ‘sipatce (tn PUPOMWD (25) Premises Ubi (2. sp "ant at) Inventors Bose yun (ec. assault vandstism) oventona inti ot Negigent lficion of Catal ess o1ner BuPciivD Non-PUPONVD (Other) Tort ‘Basins Tonnies Pracice (07) jt Riahis fea, disciination, EP tatee aoc (ro a 1p| havasement (08) Betamaion fe9. sander. bed ~ (13) 2 Frows (10) Tides Propet (19) Bisessonal Negigence (25) SL tegettapractce Other Professional Malpractice (net moda or og ner Non PUPOIWD Toa (351 EF WronatlTeminaion 26 Sine Emotoyment 5) ‘CASE TYPES AND EXAMPLES Contract ‘Breach of Conraeuarranty (5) Broseh of Ronatasee “Contract (ot uianft detainee ‘wana vin) ‘Conrac¥ Warranty Breach—Setler ts fot au epee) Negligent teach of Contac ‘waranty ‘mar Breach ot ContractWaranty Clacton fg, money ove, open book acount (0) Golecion Case—Seler Pitt Other PromissryNateCaletons Case Insuranea Coverage (na previsonsy compen (18) ‘Rua Sunreqaion Oiner Coverage otter Ssstnst ‘Gonvactual Fraud ‘Ser Contac Dspue Real Proven Eminent Domainiverse ‘reornatinn (1) wrongil eviction (33) (nar Bea! Propo (.g.,auiat f) 26) ‘Wel of Possession of Real Propeny Mortgage Forecosure uit Tike ‘ne Reat Propeny (nt eminent ‘oman, Tanoraenan or forecosur) Uniawtat Detainee ‘Commercial (1) Reiger (23) ‘rugs (98) ithe case ives egal ‘1, cnecx Is wem:Omeruse, ‘repo es Ooms or Resin social Review eat Forte (05) Pelion Re: Aviation Awad (11) Wit of Mandate (02) ‘vrcatanaams on utes Cou, ‘Coce Mater, ‘WricOtner Linked Cout Cate ther Jui! Rewew (39) Review of Heslth Ono: Order Nalco of Appeal-Labor ‘Commissioner Appeals CIVIL CASE COVER SHEET Provsionally Comping Civil tigation (Cat Rules of Court Rules 2400-2403) ‘auiwusTrade Regu (03) ‘Constveton Detect (10) ‘Gans Involving Mass Tor (40) Seruetion tiation (8) EnveenmentaToxc Tor (30) lesurenue Coverage Clas {ating fom provisionaly compioe ease type fated above) (41) Entorcoment of Juggment Enforcement of Jedgment (20) ‘Rost of Juagment (Out ot County) Confession o Judgment (non- ‘domaste rains) Sister Sata Judgment Aéministave Agency Anard (not unpaid ares) PeltentCarteaton of Ett of Jodament on Unis Taxes (tier Enforcement of Judgment ae Miscellaneous Civil Complaint iGO 7) (ther Complaet (not species ‘bove) (2) Declaratory Rett Only Inuneive Reef Only (ron- heracemon) Mechanics Lien ier Currie Complaint ‘Case (non torvnan-complag) ‘ter Ci Complain an tacoma) iseellaneous Civil Petition Poriersie ard Govprate ‘Governance (21, ‘Omer Patten (no speciiod ‘bovel 13), (at Harestment ‘ompiace Vinca EldeDependentAdut ‘abuse ‘tecon Contest etaion for Name Change ‘etuion fr Reet fom bate ‘Gaim Tater) : e an e e SOATITE People, Wells Fargo & Company, etal aemmaes —BOS-40-7-7-8 © CIVIL CASE COVER SHEET ADDENDUM a 7 ‘STATEMENT OF LOCATION | (CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION) | TH form is required pursuant to Local Rule 2.0 in all new civil case flinge inthe Loa Angeles Superior Court "tem Check th types of hearing aid lin tne estates length of hearing expected for this ease suny raat? [J res CLASS ACTION? CT] Yes time. ‘case? [—] YES TIME ESTIMATED FoR: TRIAL 20. sf x Loaves Nem nate te carect ste and courthouse oeton (4 tes If youcheckes “Lite Gage, skip to lem il 9,4 Ser cate fist competing te Civil Case Cover Shest om, nd ite main CiilCoxe Cover Shoot heading fo your ‘ese in tne lef margn below, and, tthe right in Colum A , the Civil Case Cover Sheet case type you selon Step heck one Superior Cour type of aetion in Cclunn B below which best describes the nature of this case, Step 3: in Column C, cil he reason forthe court location choice that apps tothe type of action you have ‘necked. For eny exception to the court location, see Local Rule 2.0. z a 2 Applicable Reasons for Choosing Courthouse Location (see Column G balom) o x 5 g ROVESEE Nat anne sot tn comons avncegs — ¢ tans pn osname onpmsincn § ROTI Gitta tN trier ecteteay 2 pz oan £ Bai ES Sy SS emo cones EERE ee ee rt war 5 Leon Chee petntncesnes 6 oOee Sa tha, 10. Loeaven ot Labor Gommrsione Of Step 4: Flin the iferation requested on paye sin Kem i; complete ltem IV. Sign he dedtration Ss = Re LEDGES * eee Gear. 5 acids | ES ones oy oes EID fe a 2) arta oe vee Pron iuyPrpey Domeaettunya man * [tarsweattons es) | ars persortiniP nmi nooworengioeon noamcdmeae a Aeoro AsbesiosPopety oamage 2 s Arbestos (04) TF az221 asvesies - Persanat uryrongal Death 2 Re Product Lsbtiy (24) | (] 7260 Product iit (ot asbestos or ioxcenvionmenta) 12,348 cs ~ 2s 1s | Catz mescatapacice Prva & Supra 1 ER |_MAMINT |) ara one Presses heath Camtinpacooe ' 5 0 (ara Premises aby eo. ip anatomy Pr BB Pensnalny | (=) 47230 Ine ntnl By innPrepery DansaeMohl Deano, EP | petiinn ‘ert : ap Be worl eam | rer» memos intr ot Eaog Dens ts qt (23) 2) 47220 other Persone! tnjesyPruperty Damagenvrongtul Death 144. Taenda ews oan) CIVIL CASE COVER SHEET ADDENDUM Loeat Rue 20 \ASCehp proved 3-04 AND STATEMENT OF LOCATION Page 1 of 4 | vi"i ‘Hoar me: People v. Wells Fargo & Company, et al I ‘CASE MAHER | Es 2 aypeatacten, Cayo No AAT tenon one SE [__Bnesstotton | CE] attco omer Commercials Tot a rudreae of enter iy couisigns (os) |) ast0s ct Righacrininaton haa an a3 Detamaton 3) |] asoin neamatin (tngermaa) 1.2.3 Ze |— 32 Favs (10) tors Fraud (00 contact 442.3, £3 oO Bs 6017 LogeiNapacice 128 © B | ertesiona neaigence 25 ss vot eee ) A050 ones Prot ssionai Malpractice (not medics! or legal). 142.3. ‘omer (5) LJ asaas cover Non Perens rv topety Oamage at 2a E | wens termination 36) | J anne? wrong teminatan 123, : oa ployment Caplin 12.8 3 ‘no0cs iter Employment Complaint Case “2, E | Ser mpoyment 15) 6108 Laboe Commissioner Appeals 1. 7 as00e beech of Rea eas Contact nat uiowl dctanr or wrong] 2.8 ence) Bree of Coney Wara 2s toe "Y |) asooe conteetWorenty coches Plt (no trauunegigenc) aan (rorinsuanee) |) 8019 tetiant reach of Cantastvaerany ra ave) zs 7) Ase te reac of Convacewananty (ats er neobgencny | 12.5 (J aeons cotcions coe Soe Pant zae Setters (2) | asor2 one Prine Nalco ase 25 Insurance Cawerage (18) | () Ag016 tnaurence Coveraye (not complex) 442.5,8 TC aeo0e contac! Frat 1.2.3.5 ‘Other Contract (37) (J As031 Tonious interterence W236 TC Acozr Other Contract Osspute(not breactvineurancahaudinegigence) | 1.2.3.8 » |_"onlsrraicn i)” |) 47200 Eine OomaivConderaaton Wunber of paca [ong eveon a9) | 1-23 wong Ewan cue 26. $ Ti nsore mongoge Foesenwe 2.6 © | omer ReatPropeny 26) | asas? onie rae 28 T Aiaso onerteaiProsety iterinen domain antertenen feces 2.8 ete OtaperSarmercit |“) apes unsat Ceanerconmercal a ugecrengtieasion | ae ‘Unlawful ony esiaenal 8020 Uniontul CetainerResidecial (rat rugs of wrongful eviction) 2.6, 7 poarumeeraeti | C) AS020F UntntlDenne-Foreconine 2a Sy A _ [now etanerovgs 9 |) as022 unaw! Deane Dags 2.6 ABIV 108 Rev. On) CIVIL CASE COVER SHEFT ADDENDUM ‘Loval Rule 20 ASC Approved 034 AND STATEMENT OF LOCATION Page otau [PRRFRE People v. Wels Fargo Company, al ae Jadiclal Review tigation Poovisonally Complex Eniorcemert of Judgment ial Complaints Cates, Nes Acct Fee (08) 2) Aet00 asset Porter case Patton re Arbiation (13) J asi1s Pettionto CompatContimAacateAtiation (Wet Specteg Above) 42) sist wt Adminitrative Mandamus 28 Writot Mandate (oz) | [—) A6152 Wit- Mandamus on Limited Court Case Malter 2 (8159 wit- omer timed Cout Case Review 2, ‘oer Judea Review (20) |] A850 Other Wit usa Revew Zz [AnirwevToge Regu 02] (_] ans Ants ade Regulation 1.2.8 Coneevenon vate (10) | (—] A600? Consincton Dele 1.2.8 Goins weiss MS TOt | | asooe cians hin toe io Secuities tiation om) | (—) Asoas Gecwites gain Case 1.2.8 Ee ae "iam Congas oem |] asota inevance Covereye/Ouinuyation (compu case only) 12.558, (sete Sister state sdgnent 2.8 st Absit of Judgment 2.6. Enlecenent 8107 covtesonct.udgnen ron dees reans) 20 oteaomert 2) |) asteo Atministave Agency Award oui tne) 28 CJ fons pettionceniteaie for Enty of utgment on Unpaid Tox 2.8 TC hone ume etoreament of Judament Case 2.8.8, RICO (27) 7) aso32 Racretecring (RICO) Case 4,208, ) At030 Decsaratory Kenet Only ther Compinis- | L—) A8040 tnjsnuine Rett Only (net comestichsressmen) 8011 omer Conese! Copan case (nonsominon-comples) E71 A6000 ner eu Complaint (non trnen-comples) Parterhip Copuraion |" Covernance (J asit3 Pannership and Corporete Govemance Case 2.8, 2 ntt24 cir narscement 2,39. 2 8123 worplece Nerassimen 23.9. : ‘oterPetions | 2) AB12¢ eldedDependen Aauit anus Caco 2.3, 5 vor speanes Above) |] asi90 Eicon Const 2 & co 8110 Feition or Grange of Name 27, Label 20170 resto to eet tom Late Clim Low 29.406 oF na one it Pettion 28 Ey TAGW fos ow can CIVIL CASE COVER SHEET ADDENDUM Local Rule 20 Lase: Approved 03-04 AND STATEMENT OF LOCATION Page 3 of 4e @ = wontine Penple-v Wells Fargo & Company, ctalr — eisenwa - 2 a {emi Statement of Location: Ente Ine adress ofthe accident, party's residence or lace ofbusiness, performance, or siher tcumstance indicated in item il. Step 3 on Page 1,26 the proper reason fr fikig i ine Court losaton fou eoleeloh fl EASON: check mn appropiate boxes ote numba shown 200 North Main Steet 2 Saar Column crore ype of san hye ae sce or 2 la CM? 30405.06.07,.c8.Ca.cn. | — 2 ow a Los Angeles ca__|a0012 item IV. Decaraion of Assignment: | declare under penaty of prury under the laws ofthe State of Caloria thatthe forogoing a eve and correct and thatthe above-cited mates propery ied for assignment othe Stanley Mosk courthouse inthe pints Distt oF ne Superior Court of Calor, County of Los Angeles {Code Civ. Pros, § 982 ese and Loce! Rule 20, suds, () 20 (2). <<. Dated: May 4.2015 a Baan oe REA TT Suzanne V. Spillane, Deputy City Attorney BLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILED IN ORDEK TO PROPERLY COMMENCE YOUR NEW COURT CASE: 1. Original Complaint or Petition. 2. tfling @ Complaint, a completed Summons form for issuance by the Clerk 3. Civil Cate Cover Sheet, Judicial Counc form CM-O10, + 4 Gili Gave Cover Sheet Addendum and Statement of Localin form, LACIV 109, LASC Approved 03-04 (Rev oat). Payment in fll ofthe filing fee, unless fees have been waived, 6. Asigned order apeaining tre Guaraian a6 Litem, Judicial Council foun CIV-010, it te plantit or petitioner is a ‘minor under 18 vears of age will he required by Court in order to iseue a summons 7. Adgitional copias of documents to be conformed by the Clerk. Copies of tne cover sheet and this addendum ‘must be served along with the summons and complaint. or other initiating pinading in the cace, ‘Cxg\v 109 (Rev. 779) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.0 18S approved 0 04 AND STATEMENT OF LOCATION Page 4of4STE /9EH98‘wea Fargo Werers Alege Tox S800 Fram Daso Customers Acco « CS San Hrancseo cette ton teu Seach WU Buy ce 56 te | CEseut KOBS i | “Home News Tae Weather Spars Health Eye onthe Bay Events Video Audio Directoy Taal Deals Aloo Contests | oral Consumer L.aBT | Latestlewe envionment Heatn Tech Wells Fargo Workers Allegedly Stole $800K From Dead Customers’ Accounts (Constance) ‘SAN FRANCISCO (CBS SF) — A former Wells Fargo bank employee ‘and his friend, both accused of stealing money from elderly and deceased bank 2, ploadod not guilty ina San Francieco courtroom Tuesday David Gedarevich, 25, of San Francisco and Aleksandr Zima, 40, of Carmichael, are both charged with conspiracy, grand theft, embezzlement ‘and money laundering involving more than $800,000, according to prosecutors, Gedarevich was arrested in San Ysidro on January 14, Sheriff's deputies in Socramento County arrested Zima on January 26. te h LISTEN LIVE FOLLOWUS ON © on Up foc Newsies PROMOTED STORIES reconnoietsy Mement Feng New Managorent Sute —— a tpisertioneiscocbolocalcom20102 0 elisayrmorhalingnly-side- OOO nana 1%Tr arose an iedion vat uncovered a creme ander tron roy bom Oe bak RDS ry te ceed a eee ‘The bank's fraud investigators brought the case to the attontion of San Francisco police after noticing that suspicious transactions were being performed by Gedarevich, who worked at the Wells Fargo located at 1160, Grant Ave., according to district attorney's @ office spokesman Max Szabo. Gedarevich used his position as a bank employee to allow his co- conspirator, Zima, to access bank accounts belonging to elderly and: deceased customers. The pair then transferred more than $800,000 between, and out of, the victims’ accounts, prosecutors said, “Not all bank robbers wield guns,” District Attorney George Gascon said ina statement. “Across the county we are seeing an increasing number of ‘cases where the crooks are ust on the other side of the counter.” Gedarevich and Zima are currently out of custody on $160,000 bail and remain on supervised pretrial release, \Wells Fargo spokesman Ruben Pulldo sald Gedarevich nas not worked for the company « since 2019 and that Wells Fargo is cooperating with ‘San Francieco police in their invectigation. Pulido said the affected customers were made whole and did not suffer @ financial loss as a result of the alleged crimes. \© Copynignt 2015 by CBS San Francisco and Bay Cty News Service. All ‘rights reserved. This material may not be published, broadcast, rewriten or reaistnbuted, @ Comments Promoted Stories Court Hae to Start Entiro ‘Tho amazing VA bonefite ‘hot enough vets are claiming (vanman) ‘Wial Over Again Because Judge Keeps Falling gen “More Promoted Stories + Top 4 ways pay of an sen (Gotmecn) We Recommend + Calera Paennerate Hand To Trauma Hosptial To Advocate For Gun Vielenoo ttipilsertancisc.cslocalcom201 6/210 wells foro-workers-allegedy-stole-B00k-am-daat-cusiomers-accants ‘wea Fargo werkersAlogel Too $000k Frm Da CUSIOMerS: ACERS « CS San Francisco ‘Tu 100 Mit Bee Cy Daugnter feyeareneon Land Rover corm THE 2016 RANGE ROVER MORE NEWS ig ‘Caught On Video: San Francisco Molereyriat Alecks Byes Stopped In Bike Lane ProtSis Video Cat Fr “Tort attacks in San Froeieo, Lao Vogoe Fett Repotes In Fey Big. Fig Gresh On Levit Higrwoyera7010 Wilts Fargo Werkers Alege Tok S800 From Daas CuSIOMerS' ACCES «CBS San Francisco Pevein ry + The NBA's Worst 20 Players Ever Fist Look at 2017 Automobile Models, Courtesy of Kelley Bue Book [Sideshow] (Gey Be Boh) + Cambridge Scientists Trace Aging of Al [Organisms To One Tring yam Heron ‘The Real Reason Geeks Ar ito Loot (rate? W's Right inthe Box tt Cae est ‘Michael Jordan's House in Flora is Real Really Huge - Real (aes) + San Quentin Death Row Inmate Found Dead in His Ca + Larkspur Party Bus Bust Inccave OF Larger Marin Teen Drinking Problem + Palo Ato Teacher Arested On Sex Charges + San Francisco Teacher Being Evicted For Using Appliances + Actress Kelly McGis Aiacked At North Carona Home Gerber Life Grow-Up* Plan cirt! FREE Learn More soe oa re News WATCH + LISTEN usiness Heason Potses ‘Aub on Demand Enwrianment 2 SPORTS BEST OF fies aatcatae Sete rowsabea CORPORATE Busines Devtorent Yoxcwternaracy ans MesieUserAgenen Ad ‘ipitarrencise clack com/2016/020wel ergo warkersleedy-slle Okt dend-cstomers-accout! 38NATIONAL EMPLOYMENT LAW Poo ae PROJECT Banking on the Hard Sell: Low Wages and Aggressive Sales Metrics Put Bank Workers and Customers at Risk By Anastasia Christman Executive Summary Inthe aftermath of the Great Recession, regulators reined in damaging bank practices like ‘those concerning mortgages and launched investigations ot others such as overdratt tees. “These new ules Uinnisled die income stains Givin Urese practices, However, big banks continue to implement practices and polices that hurt customers and boost profits. Among, these lucrative practices isthe use of aggressive sales metrics and incentives programs to encourage front-line workers to push multiple banking “solutions,” or products, on often "unwitting customers. As each product comes with its own setofrules and fees, customers’ financial standing can be damaged and their credit rating destroyed, and they can spend ‘years paying for products they didn'treally need, at the same time, workers laboring under these onerous quota systems experience hostile work conditions, excessive stress, and luncertaln Incomes Uhat make caring for Uvemselves aid UneirFailies neatly impossible Banking on the Hard Sell incorporates information gleaned from class action lawsuit. landscape literature on banking practices, and interviews with dazens of workers employed by numerous banks in many positions to investigate the dangers of aggressive sales metrics to customers and workers alike, We find that workers suffer harassment and threats in order to make ever-changing over-aggressive quotas, an that low base wages mean they need to put their own financial interests above those ofthe customers. We note that atleast ‘one large 1S. hank, Amalgamated, does not use these types of quotas and that in ather countries, agreements betwoon bank workers and their employers encure decent quality johs and hanking practices that put the customer first. Key Findings + Even six years after launching new consumer protections, the number of complaints to the federal Consumer Financial Protection Bureau (CFPB) concerning "Bank Account or Services" and "Debt Collection” continue to rise. 1 Fees and servicw changes an cepesitarrounts, credit cards and ather products areamnted for more than 2 quarter of revenues at one big bank, Wells Fargo, while “Commission and Incentive Compensation’ expenses totaled only half ofthat windfall, meaning thatthe Kn ceee ‘omployos who sell the products that bring in millions of dollars for their employer reap less than half the reward, withthe banks pocketing the rest «© Workers speak out: ‘0 A Maryland SunTrust worker says that “the goals are constantly sifting. Ifyou don't hit your goal it goes up 5 percent. Ifyou do hit your goal, it oes up 10-15 percent" ‘© ACalifornia teller recalled, “God forbid you went home without solutions. You could be subjected ta ridicule for nat meeting goals” ‘6 Several workers nate that managers would look the other way when documentation verifying identity was lacking or when forms were turned in signed but not filled in ‘9 Another worker with experience at both SunTrust and Bank of America recalled, “Managers really pushed me to ignore it when consumers say no” (0 One Minnesota U.S. Bank collections worker said, "There was a constant battle of how you do right forthe customer without sacrificing, you know, not paying alight bill or hhaving shoes for the kids going back to school. You can't make that sacrifice.” ‘© Banksin other countries—often the same banks that operate in the United States—work. ‘with bank workers to establish codes ot conduct regarding sales quotas that ensure Dusiness success while still protecting custuuets and ensuring devent working conditions. Introduction With news ofthe recession and the mortgage crisis largely pushed off the nation's front pages, big banks are no longer under so much pubile scrutiny nor the object of so much public disapproval. Meanwhile, they've becn profiting in ways thet hurt customers and their own employees alike. Bank emplayees walk a tightrope between offering customer service and financial advice and selling products to profit their employer, and the employer is the only one who benefits. Bank employees we interviewed reported high stress, mental distress, and physical ailments due to overwhelming pressure to sell banking products. One Bank of America worker, who ended up with an ulcer and vomiting blood after a dozen years inthe industry, recalled a meeting when a coworker explained why he didn't offer to sella product. “He sald the account was overdrawn and the customer sald she was out of work and hhad just lat her job” he remembered. "The manager told the worker that they should have offered a credit card herause it's nat ane esponsiility for them to pay thesale") “It's not our responsibility for [customers] to pay the bill, just to make the sale.” Bank of America manager to worker on pushing credit cards Inthe recession’s aftermath, regulatory agencies implemented new rules that cut into the cach streams created hy subprime mortgages and massive overdraft charges, which fed big bank profit columns? Yet, the country’s biggest banks saw impressive profit gains in the years following the recession—impressive even as compared to the profit rates they enjoyed uring the boom years leading up to it3 And while the big banks see some quarterly losses duc to volatile market conditions, they report increased sales of credit cards and customer accounts They may report lower revenues in investment banking, but their consumer [NLP | BANKGNG ON THE HARO SELL UNE 2026 5£198 banking businesses remain profitable, with Wells Fargo, Wank of America, and J.P. Morgan all seeing increases of 3 to 4 perventin te ist tree months of Ure yeas. Over dal fees a he 628 banks reporting tothe Federal Financial Inettutione Examination Council totaled $11.16 billion and accounted for 5.§ percent oftheir pre-tax profits In the first quarter of 2016, Bank of America issued about 1.2 milion new credit cards, Wells Fargo reported a steady {$459 billion in consumer loans, and Citibank saw a significant increase in its average card Toans in North America? Five years ago, a farmer Wall Street banker admitted that “the customer is simply an income stream and exploiting that isthe purpose of the banking organization." Last year, critics observed that Americans spent more on bank overdraft charges in 2013 ($32 billion) chan what the country spends on fresh vegetables.” Rank CRO< are reaping hig rewards, Rank af Ameriva CRO Rian Moynihan will take home $16 million this year, 223 percent rase from last year, while Michael Corbat of iti received 27 percent hump to $3.5 million and Jamie Dimon of }P. Morgan received a whapping 35 percent raise. As Fortune magazine points out, the average bank CEO takes home approximately 455 times the average American worker's salary.” As big banks ring up profits off customer fees and monthly charges, front-line hank emplayees stil Tabor under extreme pressure to push dangerous products on unwitting customers. Aggressive sales quotas rest on low employee wages and complicated commission and incentive programs, creating a moral dilemma for millions oflow-wage hourly workers who must balance protecting customers’ financial needs with mecting thoze oftheir own families. From humerous unnecessary credit cards, to multiple accounts and complicated financial rons ‘they may not understand (each with Its own set of fees and requirements), customers may Find themselves strugeling with unneeded products and unanticipated financial hardships as a resull ofthese sales requirements. At the same time, bank workers suffer extreme stress in ‘the workplace to meet these quotas and physical and mental problems at home trying to reconcile daily practices that fel unethical even ifthey are not, strictly speaking, illegal So long as individual workers, teoms, branches, call enters, loen offices, and managers are all judged—and paid haced an their ability ta moot onerous and everschanging: ‘everyone suffers under this system. While the sales metrics systems remain in place for front-line workers—along with the accompanying bullying, threats of termination, and strong monetary incentives—there appears tobe litle indication that the big banks have set aside their view of customers a “simply an income stream’ and workers as simply sales machines. This paper reveals the responses to the zales quota system from workers themaelves in the context af extensive literature on current cansiimer hanking practices Many of these critiques center on Wells Fargo which as the defendant in several lawsuits, has been the subject ofthe most intense scrutiny. However, coupled with responses from bank workers from a variety of banks toa set of 75 informational interviews conducted in 18 different states, it becomes clear that Wells Fargo is not alone in implementing these policies. These ‘workers, some current and some former bank employees, represent a variety of positions ranging from branch tellers co workers staffing collections call centers to branch managers. Taken together, their impressions about the dangers of the sales quota incentive ystems in place in most big banks are troubling. NEV BARKING ON THE HaRO SEL [UNE 2016o a ‘These testimonias highlight a variety of questionable ealec tactics that workers are encouraged to use every day with banking customers and the harms they do to consumer finances and credit reports. It's critical for workers and customers alike that policymakers continue to reform the banking system and address these practices. n this paper, we suggest ‘some examples from which US. policymakers might learn best practices. Who Are the Bank Workers? Roughly 1.7 million men and women work in retail banking, nearly half of whom are either bank tellers or customer service workers. They are overwhelmingly women (84.3 percent), and nearly one in three makes less than $15 an hour. Bank tellers, the single largest occupation within this category, have a median hourly wage of $12.44." These wages have been stagnant for decades; the value of eller’s wages has been dropping since the 1970s."2 (With wages thi low, iti litte surprise that 30 many workers must fall back onto publicly funded safety net programs to support themselves and he fniies In 2044, researchers at the University of California, Berkeley, found that nearly one-third of tellers’ families were enrolled in one or more such programs (the Earned Income Tax Credit, Medicaid and/or CHIP healthcare programs, Supplemental Nutrition/Foodl Stamps, and TANF) at a public cost to taxpayers of nearly $900 million per year.!>"Thus its also understandable that these workers would become concerned about and dependent on commission-based incentive pay offered on rop of these wages for selling various banking products to customers. ‘The pressure tn da saisextreme Accerding ta recent ‘customer interactions with their bank involve entering a brick and mortar branch. which ‘can explain in part the extraordinary pressure workers in those locations feel to offer along list of products to every customer wha walks through the door. Workers in call centers statting phones are presented with rigid scripts and quotas to close payment commitments ‘on outstanding bills or Wo sell new fiuenial products every few usinutes. As one Wells Fargo bbranch operations manager recalled"! practically chase customere out the door hawking ‘unwanted credit and debit card accounts to a clientele hailing largely from African-American ‘communities that have already been ravaged by foreclosure and predatory lending” nly ahowt 13 percent of ies? s and Pol What Are the Bad Banking Practi ‘Banks have long counted on various fees and charges on their customers to lift their bottom line. New regulations after the Great Recession cut into some ofthese income streams. For ‘example, new rules implemented in 2010 made i aifhcult to cnange the order in which transactions wore procesged to maximize overdraft charges or impose fees on debit and antomatedtellersmachine transae omer actively opted to participate in overdraft protection programs.'s By 2015, bank filings show this line item was 4 percent lower than the year before.® After these practices were publicized and the newly formed Consumer Financial Protection Bureau (CFPB) began investigating them, more big banks began voluntarily adopting tee disclosure forms. While workers report that sometimes these forms are not properiy used and they are not encouraged to educate consumes, User has nonetheless been some measurable success in addressing these harmful practices.” As the unless acu CConter for Responsible Lending pointed out, not only do abusive consumer banking practices [NEP | BANKING ON THE HARD SELL JUNE 2026 5e a hhurt customers’ balance sheets, they also “crowd out better products by removing incentives for banks to offer lower-cost” options."® This is why the perseverance of aggressive sales quotas and incentives programs at the nation’s biggest banks (sso disturbing, Without increased oversight and regulacory reform, these practices will continue to hurt workers and customers alike in order to boost the banks’ bottom line. And customers are unhappy: complaints ta the CRPR ahout "Rank Account or Services" have increased 34 percent from 2014-15 to 2015-16, In February of 2016, debt collection achieved the dubious distinction of being the single greatest source of complaints, constituting more than ane-quarter of all complaints filed with the agency.*? Widhout enfurced safeguards for customers, Une banks have lite incentive uo stop these practices, As Welle Fargo accured chareholdors,“Noninterast income wae relatively ctable in 2015 compared with a year ago. reflecting our ability to generate fee income despite fluctuations in market sensitive revenue."2° Indeed, service charges on deposit accounts held steady at $5.17 million (6 percent of revenue), and card fees brought in another $3.7 million (4 percent of revenue). Other types of fees accounted for an additional $18.7 million (21 percent of revenue}. at the same ume, the line item for "Commission and Incentive Compensation” cxpenses totaled $10.4 million, meaning thatthe employees who sell the products that hving in millions af dallars for their employer aren't sexing the revrardsin their paychecks. Aggressive Sales Metrics Hurt Customers Im late 2013, the Loe Angoles Timas published the accounts of workers employed at Welle Fergo facilites across the country. revealing the aggressive sales quota systems in place there and the potential harms they caused to customers. By spring of 2015, the Los Angeles City Attorney's Office had filed a lawsuit on behalf of California customers of the bank, alleging that the San Francisco-based bank was engaged in unfair business practices by misusing personal customer informacion without consent or even notification. Six months later, The Wall Strect journal reported that the Office ofthe Comptroller of the Currency and the San Francisen Federal Reserve were alsa investigating the practicns at Wells Fargo 23 ‘The Los Angeles City Attorney's Office uses language in its fling that makes the severity with which they view the dangers of the sales quota system quite clear: words like “victimized, “permicious, “unrealisue, and “traudulent” indicate the dangers it sees for customers and. ‘the dilemma faced by wothets. Based on infusauation given by uerous employees, Une sult ‘characterizes the working conditions a¢ "unrelenting pretcure” and notes that managers “constantly hound, berate, demean and threaten employees to meet these unreachable quotas.” It seeks a stop tothe practices, financial restitution ta the victims where appropriate, and civil penalties levied on the bank. ‘This effort is not Ue Gest in Calfornta to try co redress unfatr banking practices thac hurt ‘customers, hough itis the fit attempt to directly tale on the aggressive marketing of retail, ‘consumer debt vehicles by a big bank In 2012. Los Angeles followed the example set in Cleveland, Roston, New York, Philadelphia, and Pitsburgh of responsible banking ‘ordinances, building on Community Reinvestment Act laws, to ensure that banks that seek to manage public funds conus fat lending and mortgage practices in underservedcommunities And nationally, n 2010 fedora} regulators required that customere actively opt-in to overdraft protection programs and are currently investigating other practices ‘designed to maximize overdraft charges Furthermore, the CFPB solicits information from current and former employees of financial institutions concerning consumer protection violations? However, given the ubiquity af these sales programs not just at Wells Fargo but atall the big banks, the potentiat danger tothe tinancial well-being of area families, and the challenges that low-wage workers fac 1 stauing up Ww he pressure tu engage iu unethical behavior, itis clear that stronger safeguards need to he in place regulating the use of eales quotas in retail banking. As one Los Angeles-based Wells Fargo personal banker stated, “Wells Fargo wants customers to succeed! financially while ripping them off through overdraft and monthly fees, and all the other unnecessary products they were pushed to get inorder to increase the monthly fees and interest.” “{The bank] wants customers to succeed financially while ripping them off through overdraft and monthly fecs.” Wells Fargo personel banker In March of 2016 alone, almast one-fifth of the mare than 115,000 California consumer ‘complaints filed with the CFPB dealt with bank accounts or services, credit cards, or other financial services, Ifone assumes that atleast some of the 16,000 credit reporting ccamplaints and 28,000 debs collecting complaints also originated in unwanted products or services pushed to meet worker sales quotas it becomes clear that these practices could create serious trouble for consumers.” Aud with 12,000 uf the state's neatly 44,000 back tellers, Los Angeles is the metropolitan area with the second-highest employment level in this occupation in the country (second only to the Greater New York City area) a significant ‘number of workers laboring under stressful and troubling sales metric quotas. 38 Based on the information that has come to light about this clement of routine banking practices since the responsible banking ordinance was last revised, the Los Angeles Cty Council needs to cousider te dangers ufagyressive sales quotas on ts residents—reral banking customers. and banking workers alike and implement measure to safeguard against the unnceessary sale of banking products. ‘he California lawsuit is premised on the fact that practices come with numerous dangers for consumers. They may accrue fees for unknown accounts, and falling to pay them can ‘esult in accounts going toa collection agency. Unauthorized creait cards or other loans may negatively affect credit reports, making it difficult for consuaners to qualify for purchases later Asane Rhode Island Rank of America worker observed, “Obviouely, when you open 2 credit card that someone didn’t want, it lowers their credit score, losing an account can also lower your credit score. There'sa lot of confusion itcan cause; people can get all sorts of fees they don’t understand.” A lawsuit fled against Wells Fargo in Arizona alleges that as adirect result of sales metrics and quotas like the “Gr-Eight" program, bank employees opened ‘multiple accounts for Ure plaintiff without het kuowledge, and that as a result af fees accruing on there accounts, Information wae cent to collaction agenciez2¥ LFV BANG OW TE MAND SLL JUNE 20U8Customers suffer when banks disapprove oftheir financial behavior. As the National Consumer Law Center points out, the majority of negative reports filed on consumers with bbank-account consumer-reporting:agency databases are based on “account abuse" related to overdrafts» However, given the practices laid out here, allegations of these consumer abuses must be taken with a grain of salt because some customers may not even be awate of ‘these accounts: Further, the fact that these reporting agencies are frequently owned by the same big banks that sell unneeded and unwanted banking products to consumers is simply, adding insult to injury. Recognizing the financial repercussions ofa single bad consumer ‘banking report, the New York attorney general negotiated deals with big banks like Citigroup, Capital One, and Santander to stop using the largest ofthese screening companies, ‘Chexsystems, which reported only negative information on those seeking to open bank ‘Shopping for a bank account can be difficult for any customer, and even legally mandated consumer information can be hard to come by and confusing, with disclosure forms running into the dozens of pages 2 The Wells Fargo “Vision and Values” pamphlet addresses this {issue when it states that the bank’s "customers trust us as their financial resource." But ‘nunietous workers me interviewed expressed fiust atin at Use speed wide which they Wad to serve customers in order to make their quotas, often ckipping clarifying questions or ensuring customers understood disclosure forms before signing them. Customers talk to nployees expecting help and informed advice about financial products, but workers bank need to encourage consumers to sign up for as many products as pssible—regardless of thelr applicability —in order to pay their own bills or evento keep thei jobs Perens ‘fitated Companies Check and Bani ‘Natu of Relationship and Mistry of Bad Behavior Séereeing Company i t Certegy Check Services| Fide tational formation Services, ne. (FNS ‘Owned by th FS subsidiary eFunds. n 2023, Certeey performs variety of services forleading US. banks, | paid $35 millon to settle a Federal Trade Commission Inetuding depacit ond lending zyme, mobile and | eharge that volte the Fer Credit eporting Act banking systems, branch automation, electronic funds transfer, andi sues crcit cards and prepaid cards) ‘Chexsystoms Fidelty National information Sences, Ine. Owned by the FS subsidiary eFunds. ChexSystems isthe country largest consumer banking screening agency; sulle lade Bark of Ameri JP Morgan Chase, Gtitank, and Wells Fargo. aly Waring Services TeleCheck ervices 235798 Dank of america, BAT, Capra One, 1Paorgan Chase, and Wels Fareo Fist Data Corporation. (Fist Dota, a spinoff fom ‘American express, nancies e-commerce services Including bank tronsactions and credit and deat cond Issuing and processing. lt uns the STAR network that ns atm machines ocress numerous bankng systems ts CEO is Front Bsignono formerly the CO0 af ‘Morgon Chose.) Co-quned. told Ihe New York limes tt appronmately 80 percent of thelreest American banks subscribe tits deposit-ceck service "Over 3 Milian Are Denied Bak ‘Actounts for Past Eros,” New York Times, ut 30, 2013) ‘Wholly owned subsidiary. TeleCheck anditsafliate TRS ecovery Serves, a 6b collection company, settled with the Fvoral Tere Commis in 2048 for lations. ofthe Federal Credit Reporting Act.QT0T GE: 90 NEL [BANKING ON THE HARD Su | JUNE 2006 The Structure of Abu: Jo Sales Metric Systems ‘As Wells Fargo explains to shareholders, they use “cross-sell metrics” to determine how well, they are serving their customers. However, they note, products that qualify for inclusion in ‘he recall household cross-sell metrics must “have the potential for revenue generation and long term viability.” Thus, the types of baseline banking products that most customers well request, nel ng ATM carl anne harkin the metrics. Instead, the bank counts only products such as credit cards, debit cards, auto ‘and student loans, mortgages, and home equity loans. For 2015, Wells Fargo's household cross-sell was 6.11, or just over six banking products on average per accountholder ‘address. A company pamphlet on vision and values states a desire to increase this number: ‘We want to get co elght.and heya" an direct deposit, are not included in ‘To fulfil these kinds of growth plans, hanks need tn implement zggressive cales quotas at numerous levels: forthe company overall, regionally, by location, and for each individual ‘worker, Employees at every evel explain extreme pressure to meet these goals, which often change and are sometimes not revealed tothe workers ina timely manner, As one former ‘manager for a Santander branch explains, goals for each employe of his faciity came pre- packaged from the regional branch with arate that was “always almost impossible, but always inereasing"s” A Wellz Fargo personal banker told The Wall Sereet journal that his branch has daly and hourly goals set by the company, which changed based on the season." ‘Workers are enticed to meet their daily quota with a reward system that attaches value to each “solution” or product the worker sells to a customer, sometimes in the form of points ‘that lead toward a sec commission and somecimes asa dollar value. While the Wells Fargo “Gr Eight” program, which get the goal of eight banking products per howschald, has come under the greatest publi scrutiny. other hanks have similar systems ta compel front-line ‘workers to push products such as “the Hustle" (or HSSL: High Speed Swim Lane) program at Countrywide (Iater ‘subsidiary of the Bank ot America), which compensated employees solely on the volume of mortgage loans they originated and resulted ina $1.27 billion seriement”+ S18T19E9 8g NEL? | BANKING ON THE HARD SEAL JUNE 2016Sales Quotas Are Fver-Changing and Iinpredictahle Workers at many levels within the banks report that they strugsle to meet their sales goals tften without even knowing what those goals are fora given period. «+ One Bankruptcy Relationship Manager at US. Bank sad in late 2015 that her employer ‘was “getting ready to change the bonus structure AGAIN in January,” even though she did ‘not know even at that late date wnat her current quota numbers were -AMaryland SunTrust worker says thatthe goal ar constantly shifting Ifyou dont hit your goa, it yon 95 poteont Tf yon da hit your goal, t goes up 10-18 percent* collections worker at US, Bank observed, “The goals for bonuses are never announced in advance, o's hard to know from month to month’ what expectations are, while another claborated that because goals were routinely not released until the 10 or 154 ofthe ‘month, they were largely unattainable Another US, Bank ‘know what the bonus is even going to be until halfway through the next month. I wich ns worker state, “I's realy hard toda budget when {don hey’ he more transparent” '* Managers, to, feel the pressure ofthese individual goals fortllers and personal bankers. One Wells Fargo manager said that while he was responsible "on paper” for making sure ‘that each employee he oversaw met their expected goals, “off paper the expectation is that ‘asa manager ital falls on your shoulders.” A long-time Santander branch manager said Uae if au employee leaves befure a full yeas un Une job, the manager's own incentive pay ‘wae affected Quotas Pit Workers Against One Another and Create a Hostile Work Environment According to workers, failure to meet one's sales quotas doesn't only come with financial repercussions i the form of lost incentive pay. Workers are also publely miacked and threatened in front oftheir peer + The lawsuit filed against Wells Fargo in California alleges. "Managers constantly harass. berate, demean, and threaten employees to meet these unreachable quotas.” A Wells Fargo employee cited in the complaint relates thatf an employee failed to meet his or her quota, they were threatened or embarrassed during morning meetings. A Bank of America customer service representative wrote an op-ed in which he referred to “Hunger ames scheduling, in which the most convenient or desirable work shifts were allocated after ‘workers submit “bids” based on their quata incentive points, pitting workers with child care needs against those with transportation challenges. As he noted, “Here, our time rather than a bonus or promotion opportunity is the prize." A former teller at Wells Fargo revealed of management, “They would put everyone's ‘metrics up inthe break room.” ‘A California teller secalled, “Gud forbid you went house withuutsulutions, You wuld be eubjected to ridicule for not mesting goal.” branch manager explained thathe was expected to hover behind employees during each conversation with a customer, and to draw the employee away mid-transaction if necessary to remind him or het to offer another product or ask why they were not doing, so." This was so terrorizing, it was unbelievable.” ‘A.Los Angeles personal banker stated, “Entry-level Wells Fargo employees are being treated like hostages. We lack the job security and a healthy environment for work that is nt strese, discrimination, or harascment free" Ne? | BaNMING ON THE HARO SELL |.UNE 2016 5Sales Pressures Hurt Workers and Their Fam ‘Workers laboring under these high pressure incentive programs bring their work home with them. Many report suffering physical stressful workplaces, and they strugee to make ends meet and care for their families on their low wages. In numerous cases, managers encourage them to pursue sales opportunities ‘among family and friends n order to hit their goals. + Workers open accounts that family members don't need just to make their numbers. One ary sad that she ifestations and ailments as a result of their manager in Florida with exporionee at hath Rank af Ameria andl Wel ‘opened an account for her daughter that she knew they would soon close, and that one of her bankers opened an account for each of his 11 grandchildren just to make quota numbers. Another teller in Florida admitted that she enrolled her sister for a credit card that the sister dl not really understand. "She maxed ic out, and she stil has that maxed-out create card 10 years later Uipon being asked ithe madea living wage. ane farmer Rank af America personal hanker replied, “Oh gosh no. Food for my son was realy hard, He's 12. couldn't puthim in any extracurricular activities” ‘One Minnesota U.S. Bank collections worker said, "There was a constant battle of how you do right tor the customer without sacrificing you know, not paying a light bill or having sues for ie kids going Lack w selivol. You taut ‘A Rhode Ieland eal-center worker caid, "I used to ery every day, Eventually, lTearned how to compartmentalize. ike hal sacsifice To Meet Sales Expectations, Workers Must Weigh Their Interests Against Customer Interests ‘while many workers say they enjoy helping people and working in a customer service role, they find that these functions too often have totale a back scat to moving various benking “solutions” in over to meet their gnals and earn critral incentive pay ‘= A call-center worker alleges that her manager told her to keep numbers on call lists even, after customers ask for their removal, and when she questioned whether that was a violation of the Fair Debt Collection Practices Act, she was written up, Several workers note that managers would look the other way when documentation verifying identity was lacking or when forms were turned in signed but not fille in. ‘A former personal banker admitted, “Iihad never in my life been the sort of person tos dollar signs when people walk in. always liked building relationships. But these inane goals really affected how I saw them. | didn’t think about meeting their needs, thought about how can | meet my goals” One Florida personal banker with Bank of America admitted, “I had days that even though ‘sil ewaly arated soll and that’s very scary tts nota financial service position, ive a sales pocition. And that meane its not about the customer.” ‘ARhode Island Bank of America service specialist recalled, “If someone's getting married, tell them to get credit card. Any life event that happened, you were supposed to say ‘geta credit card for it’ Ifyou heard kids inthe background, the answer was a creditcard.” A former Pennsylvania Wells Fargo branch manager admitted that some tellers would “churn,” or open new accounts for current customers, but manipulate the recording of the transaction to make itappear that new accounts were being opened. and that sometimes second ar third accounts ware heing npened far custamers withant their approval TNELP [BANKING ON THE HARD SLL [JUNE 2046 rcSTOT Tee 38 Workers Have No Viable Avenue for Reporting Unethical or Illegal Policies Workers frequently express discomfort with the tactics they must use to sell bank products, but find litle redress when they go to managers with their concerns. Infact in most cases, workers say that their managers are already aware ofthe practices in their branches and even encourage them, ‘+ AMinnosota worker says he had atleast ewo conversations with his manager about unrealistic sales coals and was told, ‘What do vou want me to do, brother? My hands are tied and just do whatthey tell me to do.” « ACChase Bank sales and service associate noted thatthe managers were the ones who told us to push the products” ‘© AUS. Bank collections worker couldn’ share concerns with management because “they created anenvironmentto get the payment, no matter how longit tales” Another worker with experience at hath Su really pushed me to ignore it when consumers sav no.” stand Rank of America reralled, "Managers Workers Can Be Part of the Solution ‘Thore is nothing inherently wrong with businesses setting goals, ertabliching benchmarlss, and encouraging all employees to help make the business successful. But the current structure of the quota system within the country’s big banks bends those practices into a set of internal policies that benefit bank CEOs and shareholders, but are bad for nearly everyone cls. This does not have to be the case. Amalgamated Banik, whose employees are unionized, recently signed a contract that ensured all ts bank workers will earn a Starting wage of at least $15 per hour, which gives them zome ability to plan family budgets and care for themselves and their children. These men and women do not depend on sales incentives or rewards to make ends meet; Infact, whlle the bank does set goals for its branches, It does so with the best interests ofthe customer first and foremost and docs not mandate individual goals nor offer individual rewards. ‘There are also examples in other countries of codes of conduct that address the isue of over-aggressive sales quotas and incentives plans The Finance Sector division of UNL, the slobal union organization, works with financial regulators and banking leaders inthe European Union to protect worker interests, including ensuring that “the use of sales targets should be limited in order to avoid conflicts of interests and to reduce pressure on ‘employees"* In 2010, after workers employed by financial companies across the globe shat Uteir tories abuut aggressive sales practices, UNI Finance adupled « Model Chat tet ‘on Responsible Salee of Financial Producte. Recognising that cuctomere depend on bank ‘employees for responsible advice and aid in their financial dealings. the Charter calls for realistic, falr, and transparent incentive systems for employees and states that rewards should be given for good customer service and qualified advice, not for selling specific products.“ Furthermore, UNI Finance Sector worked to get whistleblower protections ‘written into compulsory financial regulations adopted by the European Commission, giving ‘concerned banking employces a process by which to elertlawmalcers if their employer asks ‘hem to engage in wnethial behaviors an the job 18 Additionally, in Brazil after a 2014 industry-wide strike, workers at numerous private and public hanks won a pay ralse and language addressing Sales practices in that country %Santander Rank—onw of the hanks aporating in the United States using aggressive ales ‘metrics in its branches, according to workers interviewed for this report—has an agreement with its workers there that addresses many ofthe abuses reported by workers inthis country. Managers are prohibited from publicly posting employees’ rankings and from _mocking workers who are not meeting their goals. They are encouraged to tailor sales offers tothe needs and financial capacity of each banking customer and to ensure customers understand all the conditions attached to products before employees cloze the sale” In Deennark and Finland, UNI teputts Wal sales Largels ave seLaftes consultation and negotiation with worker-led bodies and that targets are linked to customer service.‘® ‘The majority of bank and finance sector workers around the world, including those ‘employed by US. banks operating in other countries, are union members who are covered by collective bargaining agreements. Firance workers who have a voiceon the job and whose fundamental rights are protected through collective agreements can be instrumental i mitigating abusive labus prattives Uiat can lead to customer harm. When workers are empowored inside the workplace they have the ability o ensure, on 2 day.to.day basis, chat ‘customer interactions are not tied to excessive goals accompanied by the threat of loss of incentive pay, discipline, or termination. Through collective bargaining, they can implement ‘methods that ensure that interactions with customers focus on meeting financial service needs and uphold high standards of ethical sales practices. ces than a decade ago, poor proctices andthe pursuit of consumer generated revenue by the hig hak triggered the worst recession tic county had seen in generations. Policymakers addressed some of thse practices, but nthe process, banks developed a policy of replacing some of those revenue streams with fes and penalties generated by rutiple accounts an banking products. In order to generate these profits, lowwage rant line workers must engage n sales tates that range rom the uncomfortable and unethical to some that border on legality It stime for policymakers to support frontline workers who Suffer under tese systems and to condnue te rask of cleaning up the fmancal services Industry and protecting consumers by crafting new regulations to cease these practices TELP | BANKING ON THE HARD SEAL | JUNE 20K6BIBT BEY Endnotes "ana mer veer ue rm utr reper ata ni tematonn rer to pete he ster amen rian i ating hat eo won a wh yr 2 ite tet nm dnc ton At genie ay 21,201 andamenmetso + inca drat nt ber sunget rc acca Ren es ee arma 16.2 i adasenaeaana nt gon ret uate 4+ Men sti sae ban Tigh The Wa Stet Onna ars erembe I 201 Seger ane The ny Ting UP on Set ED Ps Forane Nae 2226 "Rifai wea ag," ee. oy fk em » Sheth eb ease ngs at, Te afar 13 auarcouranate scr tre mec tte tet Nr 78 aN res aes e/a " Tew Charen Ts “ches sacs 2015 dt May 2015 Emer or emporstcancng Wipro Ovrra Pracees The Sateot Lene Amara ks Impacto US owen uy 208 poses "Comome Fnst Preecton Bure, "Monty Compl Report, at 9h 2014 asta: Ware ern ofc bla a Sa Centar ‘sien 3 TheVepiaf teat fafa Welt Fars & Company an Were Dok Noten scone Sepa nett Satta Sy is ng 41 Ea kre sesh “wan andl conta Lrg Timer sy 4205 Ove mote ne a aetna was dota oh ‘eianing ad fanaa roduc aye elloger et Wale org Company and Wale nak Ma fed ed Sats Deseo oseatl tonne 20 2 Enlarge Fr Bas Care Go Wel Set ou Nowembe 30,2015 Seer eepone ale A Howard aw Soe eran an opr Corece nd oor anon AP Wtbie aval he sates irr a SNe at ston ees 1s SEES esc Proton Suey C98 Sody of Over rogram” ne 203, ae nds consemsnansa 2004 cp whteanar uel Cosine Fal Proton ‘neu Pour Ching Arun Ovrom 0 ae Se ‘Mle cnaumarnancagea (20407 aac dea uc) » Gan you toon tc nate a serena: Gecembe 1-20 ate on he CFP wee: eo Bitindy mpi pot vats a pape ae aes mls cecenernas re ZOE monn aan ‘= Eifel tate Sotss Oeste! mpoment ng Wap ey 013 13.307 Teles” ease st ‘= Rereegr ertconsy s We Fo Bk A Ueda Cor ar ait 1» Seana ern rrig Cancun opera gre” atl one La comet 2034 “Canna up cae metre nbn ne Cane wr ony 77S AC Seer ‘tonnes Coren by tater tana ears tas nary aca taco eon tse ean eva rare Varta aft aren ma ese wa vs USPMG. te nk ge Fes 241 ano Pes, Cece aed aces Though pera eta ne ee ty fndthr mre ban atopeg be rote wen rcamest ousted enean moive ea > NEL | BANKING ON THE HARD SEL. JUNE 2026 ee a 4 > Weta Visi Vale” page 26 vrson sable ‘eb oso cle sen on oportuntes oS eapt nba african cos ee 2% Whar pone teen Ape 2201 On ew NEL > dete nit BUA Nog al eh ies ie, ee 2, ty eed aa lc ean Bin i ed Ut cba Ue eats tren uct senna ef cna eee ruse ‘dun nosy, Uinta aropeanasics tenes appenton ch peer United Sst Se it con Une ls Da Wore om Ss Qua Bombe Besnseck Mach ‘+ Thartems come ng fm wi ed ais Wels Ft hes gs Cay Aci on eal eee Teavsentea thse bind wares fed ate eb Ri Fert Dah 5 2016 Arable (iim sad ‘© ounrasin wih Wasi €E nse rth nl st Mie Bao te an $15 Amica ‘Proper age 1 2018 Gs ews Ma ao Py Sth Rates am Nags ow © Sit Fee Setar mason BU estay fama 205 ae Mts emeanttubanone tr fianeecsatosot okies + ‘Gin Sic Con Hud cat on eas uc rode” e230, alate a ‘ie ulbenocztefk sine aces ore ar rsa +e Reprat ton cua Son eer ecto ing Corpo sn Scning Woven” ubshed Serene 29 205 salah ath ameealaalanceaena ons anodes ita dineeaninona las /ksi na halon neatics aoa co SREERTRTEARSUAE EMesT rele De Skigas rMANCE Nos (Libor elas and he Dever of Pac Servs}” ‘esement betwee So Pe Bok Worker ad Santander Eamon ith NEL + Ghilin, leoce Setar Seioe the Hunan Ci 013 kaw ‘ddnailnons/tts/ snl soto as20aney ad 0 2016 ution empoynet a jet Ths epi contd by he Gene Canons “rb Nenconmeca Nee ena etc i Joentxcnmor etn erfarbar asin pcr EL power NEL | BANKING OW THE HARD SL, | JUNE 2086cmon | Bevin’ <" Riese” Sate Bar Number 2255557" a ome EARLY SULLIVAN WRIGHT GIZER & MoRAE LLP ar CaN ot Callomia 6420 Wilshire Boulevard, 17th Floor, Las Angeles, California 90048 nw af 06 Angeles. TELEPHONE NO. pay, JUN 3 snl SULA a HOARD EL 0708 SUPERIOR COURT OF CALIFORNIA, COUNTY OF Los Angeles Shon Bas ve Ofori srreeraconess: 111 North Hill Street Py ia J smuncvomress. 11 North Hill Street ive okie conmoarcroe Los Angeles, California 90012 esate Conia ASE Wa: a Allagracia Ugalde Motta v. Wells Fargo & Company, eta (Cy cwit case cover sHEET Complex Cate Designation |= ™—BE SLT CH United) Lined \ ee aoe J coumer LJ soinaer | — demandes demandedis_| Filed with frst appesrance by defendant exceeds $25,000) $25,000orieee)| (Cal Rubs of Coun rule 3.402) | eon ems 1-6 below must be completed (see instructions o7 p29 2). 1. Check one box below for the case type that best describes his case: ‘aa Seusotsortoahannty05) aL me Car tess SOe SIO) Uninsured motorist (46) ule 3740 collections (09) (F nttruertrage regulation (03) ‘Other PUPDIWD (Personal Injury/Property — [_} Other collections (09) (S) Conetruction detest (10) amaga/Wenngtil Neath) Tort Insurance coverage (10) Meas tort (40) ‘Asbestos (04) Other contract (27) (5) securities toation 26) Po mc edo nacre on masimeeaseel ee anacivene etic we ee TF omen ess 0 econ C7 sere rns rn Non-PUPDIWD (Other) Tort LJ wrongts evieson (38) types 41) CT easiness tata business practice 7) L] canara prope 2) eorcement of Suomen cans (00) nll Detainer TO cemercsmant efjugent (20) H (Defamation (13) CO commercat (31) Miscellaneous Civil Complaint Fraud (18) LJ Resisentat 22) LC) acon 1 tnietectual property (19) C1 vgs (38) [other complaint (not specified above) (42) LJ Proteccionst negigence (26) Judicial Review migronaneaus Cri Hotton ZI comer non-PuP DID tot (35) S| ‘Asset forteture (05) anmerehin and corporate govemance (21) 2 Weng ternsination (30) oon or mance (az) 1 one pester eae TF other emeioyment (15) Eo other jee revtew (38) Z Thscase [lls LZ] ve not complex ander re 3400 ofthe Calora Rubs f Coun Wie cases complex, math tha [aioe eaudrgercepboal usc nansgenans Large ne of epecyrepreseied pares ¢,[] Lage number of wineses 1 [1] estersive motion pace raising afer novel» [Cronin with ae acts pando cme cous sues hal wl be ime-consuring lo esove inter conte, sats, or counties, orn 2 federal cut eC Siesta amount documertanyevcence +. Substantial postudgnent ual supervsin 3 Remedies sought (check al that apply): 14. Number of causes of aeuan (speenyy: 4 5. Thiccaco [Jie [J ienot ctace action cuit, £ Seen acerca rere Date 6/30/2016 Devin A. 1 I ee SS soe ‘«Piainutt must tle ms cover sheet wan he fst paper lea inthe acon or proceeaing (except smal clams cases oF casee hed Under the Probate Code. Familv Code. or Welfare and Institutons Code). (Cal. Rules of Cour. rule 3.220.) Failure to fle may result 1 Fis tis cover shaet In dalton to any cover choct required by local cour ro. +I this case is complex under rule 3.400 et sea. ofthe Califoria Rules of Court, you'must serve a copy ofthis caver sheet on all ‘ner partes tothe action or proozeaing, + Unless tis s a collections caso under rule 3.740 or @ complex case. this cover sheet wil be used for statistical purnoses onl monetary b [] nonmonetary declaratory oriunctve reiet ¢ LZ punitive "eh Send Estee CIVIL CASE COVER SHEET Oe Re hae keane Gheieme an ‘wncomineaINSTRUCTIONS ON HOW TO COMPLETE THE COVER SHEET To Plaintifa and Othera Filing First Papers. If you are fling @ frst paper (for exemple, a compleit) in a civil case, you must ‘complete and file, along with your frst paper, the Civl Case Cover Sheet contained on page 1. This laformatin willbe used to comple statistics about the types and numbers of cases fled. You must compete tems 1 through 6 on the sheet. In item 1, you must check fone box for the case typo that best coscribes the cas9. Ifthe ease fs both 2 ganaral and a more epecific typo of caee hited in torn 4, check the more specific one. If the case has multiple causes of action, check the box that best indicates the primary cause of action ‘To assist you in compleung tne sneet, examples Of the cases tnat belong under each case ypa in lam 1 a7@ provided Below A cover sheet must be fled only with your intial paper. Face to file a caver sheet withthe frst paper fled in a civ case may subject a party, its counsel, of both fo sanctions under rules 2.30 and 3.220 of the California Rules of Court ‘To Parties in Rule 3.740 Collections Cases. A “colectons case" under rule 3.740 is defined 2s an action for recovery of money we in a Sum State in be certain tal isnot mex than $5,000, pac of intorast ant atlas fees, aiing fram 2 transaction in \which propery, services, or money was acquired on rect collections cate does not include an action seeking the following: (1) tort Uanayes, @2) punitive Yanayes, (3) weuawery of real property, (@) wacowery of personal property, oF (5) a prelusgment Wc of attachment. The identification of a case as a rule 3.740 collections caso on this form means that it will be exemet from the general lime-or-servie requirements and case management rules, unless a defendant fles a responsive pleading. A rule 3.740 collections case will be subject tothe requirements for sence and obtaining @ judgment in rule 9.740, ‘To Parties in Complex Cases. In complex cases only. partes must also use the Civil Case Cover Sheet to designate whether the ‘case f complex. Ifa paint believes the case is complex under ule 3400 of tha Caiiforna Rulge of Court, ths must be indicated by ‘completing he appropiate boxes in items 4 end 2. Ifa plank designates @ vase ao wane, Ute Gaver Slee rust Uw served wh th ‘complaint cn al partes tothe action. A defendant may fle and serve no later than the time of is frst appearance a jinder inthe cmo10 ‘the cane te complex. CASE TYPES AND EXAMPLES: puto Proll Cones Ci ation ae eee es ef Samana peers aaa cps thee steanent ‘Saat vault be Sa carer lesen Fo loelidche eal Soe ro ae ea) ‘motarist claim subject to ‘Contract Warranty Breach Seller ‘Securities Litigation (28) coool ae Sactteilacerniens) Enea To tera vances Eases Cane crs Po fad ad ay (Reng sre Ropers Bement bat) cnet comin cote ane cn) ‘eared ore AE mpage ee raat es oa ‘es cama Sey i i prota aaa vege Cea poor Secu le toxicsermvironmenta) (24) complex) (18) ‘Sister State Judgment vacates Ferre Sin et Aa Tacduneses- hee re es ee er) meee ete ne erat Coe Se a igen tt ers ear ante Se ces aan Se ati al ree trey Bae etn (ea. assault vandalism) ther Ral Propo (2 9, in tin (76) ve) ( ana pede lf mtn early an ony er earl Sez kon on ee oe ica oe Emotional Ditress ‘Other Rest Proverty (not eminent Mechanics Len aes She Fe bony te Scams Deneeton ree a , Smeets Saree nme fae eon co SS. daca fou scents Sete censor rmnond Co fearon i cana oui Ste. sa Ty nays rms i ee) ete Telos Precery(19) Fe net) eee Vince heen eerce care ‘ae Gir Peston mapracice \Wctancomuson Ures Coen pale 2 ontemee os, cae ee te ‘Other Non PUPOMD Tor (35) Wil-Other Lined Court Case eal Enoloyment Review tes Gl Pelt, ‘g2 Wtonghd Termination (36) Other Judicial Review (39) see Obes Employer (15) ‘Review of Health Officer Order n Notice of Appeal-Labor ‘Carrisner AEA eae eaaedl CIVIL CASE COVER SHEET oeSORTS. syagracia Ugalde Motta v. Wells Fargo & Company, et a csmmoe BCG 25644 4 CIVIL CASE COVER SHEET ADDENDUM AND. < STATEMENT OF LOCATION Zz (CERTIFICATE OF GROUNDS FOR ASSIGNMENT TO COURTHOUSE LOCATION) ‘This form is required pursuant to Local Kule 2.1 all new civil case tings in the Los Angeles Superior Court. (Ci4item 1. Check the types of hearing and fil n the estimated length of hearing expected for this case: ©) wrvrinrvcs —cLAsoAcTION? YEE LIMITED CAGE? YEE TINE CoTiMATED FOR TRIAL TAO ney DAVE Item IL Indicate the correct district and courthouse location (4 steps ~ If you checked ‘Limited Case", skip to Item Il, Pg. 4) ‘Step 1: after trst compieting the Civil Case Cover Sheet form, tind the main Givil Case Cover Sheet heading for your Case in the Feft margin below, ari, to ne ight in Colutun A, tne Civil Caste Cover Shel case type you selected ‘Stop 2: Chock ang Superior Court type of action in Column Bi below which beat describes the nature ofthis cave. Step 3: In Column C, circle the reason for the court location choice that appliae to the type of action you have checked, For any exception to the cout location, see Local Rule 2.3. Appleable Reacone for Choosing Courthouse Location (20 Column © below) 1 Geseaeneusoe ane nyt Corte atl donc. § Larne wong mea whe 4 Gases Gs eet Cece eset ttn ea rer eas ; Heals cise CEE re ee antec wey S RASHES MMe ean eI os lesletesregamccrsk = 1 day ngs) Step 4: Fie wanton os page en compete He. Sign the decaraton, x 5 Cepia chica ove esi sess er od eo Cea wie nano) [a a0 Mirvece-rexinayaoey Cmagewergubean [1.2.4 Fy 22 | cemccsumcseg [a ar resowtnnyhin SonsetontsOnetiusoucrtan [2.4 emmy JO 20% Maer pny oaran 0. A721 Ate Penoathe Desh ox EE | sesacanmyay [urs panty tases enorme rer B3 53 © AO taicapara-Popane karo us ES | esas: 2B Jo area Other Professional Health Care Malpractice 1d oat 1. A7250 Prices Libity (9, sp 8) ts a oer tenn é ©. 570 ine ey nye CoraevensOEEn 69 “ inert ue Sr] ete Sey aa thea (23) 1D AT27O Wein ton u Enna Ostess a a 1B A7220 Other Personal nun ropes DamveAonofl Death Us LACIV 109 (Rev 3/15) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3 ASC Approved 0-04 AND STATEMENT OF LOCATION Page tolAtagracia Ugalde Motta v. Wels Fargo & Company, et a | a a 7 ipeatie Cm cate Cover Seat rypect Aen Reason ‘So Sep 3 ate (checcon oe) "we Business Tato) | @ A0z0 Orr Coneerdausness To atta cireah of cnrac) 6 ze g5 ee 12a £3 | cemmonny |o mau ceanann wonenney aa es 23 Frau) 1 ABO Fc (neo) 12.8 2 ee © Aor? LeyelManaue hae E'S, | ertesionainepigenee ae seers AS) | cy pc060 ober Peter Maproctie ret med lr ga) 4.2.3 26 comer a5) A525 Cer Non PererlinyroperyOarage ot ko +g. | wreretrTemraion ao, [oA Wa Tension 12a z | FF cremnmmagg [YM erenpomen Comrie 1.2.8 = resmeet(') | 49109 Labor Comsioer peas w 1 AOD frachof Resales Conta uam aw wngt Ys eal ernenescrereruwnran | asoo8 ConractMeanty Beach. Sele Pint no keudedigene) | B® {pot inauronee) |U__ABUTY_ Negligent Breach of ContractWarranty (no fraud) aiabe 10. A028 cher Breach of Conraciwarrany (not aun or nepigenCe) 1.9.8 3 pa . C6002 Collections Case-Seller Plaintiff 2,561 & ane 1 A6O12 Other Promissory Note/Collections Case 2,517 1 A8034 Coleen Coe Puchced Debt Charged OM Consumer Date |, 6,11 - Puachand ona ate Jana 1 ta IneaneeCovrage(t8) [_AGCIS nernce Cova rt comsion 1.2.5.8 © pews Conracwarerave 188 onerconasan — | A020! Tatas hieteewe hase ©. A627 Other Coen Dupttcecdimnrncrtowinestzene) | 4.2.9.0 era ge [_Meaammonna™ [© M00 Enentconartnsemain —_ntecare 2 E | wwerauewatoncan [a ss0a2 wong eaten Coe ae é 1D ABTS Motyape Foreclosure 2.6 ‘Other Real Property (26) | 0 A8032_ Quiet Title 2.6. LL ABISD ner KeatPropeny ot emer oman andorra fc) |2 6 _B [PRRRTeRRRE Cone Tc unomaonarer Conner er wren oon 2.6 a iniowdvl Dctainer Resigentiol - 2 [er oone "| Asoa0 Unswhs Gear Resse ot dor wonton 26 gi a | UiawtaDeane: | anonrtnemai etna PeetFoesinve 2.6 © [crams cernercns.ae) [0 Aoi uname vere nn 2 s asa = 2.6 LAGI 109 (Rev 3/15) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.9. Las apaea-04 AND STATEMENT OF LOCATION Page 2ore"E nagracia Ugalae Mona v, Wells Fargo & Company, et a B © state Lam case cover seet type Acon Reatere See Sep 3 ‘Sater chen onan) soo asserratenwe(os |] A0100 asset Fue case 28 | _Petenrentaaion(ny [Ast Peitont ConplCenimrecte Aton 2.8 z Wat cinandate (0) | ASHS2 Wu-Rmdarce inn Cn Cm Air > 3 1 ABYSS Wint-Cter Lites Cout Case Review 2 ‘omer vusnarnevew(%) [ABT Umer Wet dudes! Keno 28 cg | AitusvTicoeReylatin 05) [EX ASOOS AruatTiadeRegaaton 128 | commaionosteacioy [0 na007 Commetionoetet 1.80 2% | caremeunaess re | one cine moving Mas Tot nae Fl S| cts ttgton a) [A096 Genin gator Cove 18. ? Tose Toa i cee ag) |. ABIRE Tone YrvEnvonmental 1.2.2.8 B | rerance Coverage eins oun Covaayeunapeton camper cas 128 E | mpuaeecomnae Cains Tc pao16 wouance conmyeSianapnn cone ” Aste) Ser Ste ulgment 3 ee 1 A6180 Abstract of samen a : z- a 0. AB107 Confession of Judgment (non-domestic -elabons) 8 gs erstmgmert 20) | nai Admini enc Ava (tlie) 8 Bs 1. ABIH4 PeteniCeretfor Entry sgn on Urol Tax 8 1 A6tY2 Ome Enorcament ol usgrent Ce ° rico a7 1 ABOSS, Racketeering RICO) Case 12.8 ai zs © A6090 Decal RetefOny 12.0 FE) cenconun | se monnetenony ft coonsne) ae HQ | er Spented noe) 2) | ry sors ote Commercial Compl Case amtethee-connin) wa 28 1 A8000 Ot Cit Compl ron enon ceed 128 Parowreip Copeston Carats Goveranee Case maunecomester Tc) Agti3 Patnectip an Copaae Goverones Cs 2.8 1 A6121 Cod Hareement 2.3.0 ge 18123 Workgace Harassment 2,3,8 Fe | cmsamemon [0 MH Seen tee Cos aes FE | semreanbowea) | A6100 ctecton context 2 11 A510 Pemon er Cange otname at & 10 At70 Pelton or Reka rom Late lam Law 29.408 = 1 A100 Ober Civ Peon 2,8 a CHOW 10 Reva) CIVIL CASE COVER SHEET ADDENDUM Toca! Rule 23 ASC Approve 03-06 AND STATEMENT OF LOCATION Page Sof.‘Allagracta Ugalde Motta v. Wells Fargo & Company, et al Itemill Statement of Location: Enter the address of he accident, party's residence orplace ofbusiness, performance, orother circumstance indicated in item I, Step 3 on Page 1, as the proper reason for fling inthe court location you selected. REASON: Check the appropriate boxes forthe numbers shown Linder Cum torne ype of acon tat you nave sete or p1.92.03.04.05.06.07, 08.0 9.c10.011 Seta Monica ca | goeoe Item IV. Declaration of Assignment. | declare under penalty of perjury under the laws ofthe Slate of California thal the foregoing is true ‘and correct and that the above-entited matter is propery fled for assignment to the Stanley Mosk __ courthouse in the, | Cente! District ofthe Superior Court of Calfomia, County of Los Angeles [Code Civ. Proc.,§ 392 ot seq, and Local | ute 2 3, su00,a). Vatea: 6/30/2016 a » WwW — BOTT OF TOMETUNEPARTD PLEASE HAVE THE FOLLOWING ITEMS COMPLETED AND READY TO BE FILEDIN ORDER TO PROPERLY ‘COMMENCE YOUR NEW COURT CASE: 4. Original Complaint or Petition. 2. If fling a Complaint, a completed Summons form for issuance by the Clerk. ‘3. Coil Case Cover Sheet, Judital Council form CM-010. | 4 Civil Case Cover Sheet Addendum and Statement of Location form, LACIV 109, LASC Approved 03-04 (Rev. oars) Payment in full of the ting ee, unless fees have been waived. 6. Asigned order appointing the Guardian ad Litem, Judicial Council form CIV.010, ifthe plant or petitioners a ‘minor under 18 years of age willbe required by Cour in order to issue @ summons, 1, Adatonal copies ot documents to be contormed by the Clerk. Copies of the cover sheet and this addendum must he served along with the summans and complaint, or ather iniialing pleading in the ease, LACIV 100 Rev 85) CIVIL CASE COVER SHEET ADDENDUM Local Rule 2.3 LASC Approved 03.06 AND STATEMENT OF LOCATION Page dota