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Former employee accuses Wells Fargo of mishandling fraud investigations

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Former employee accuses Wells Fargo of mishandling fraud investigations

A former Wells Fargo & Co. employee is suing the bank for firing him after he complained about hundreds of mishandled fraud investigations in the company, The New York Times reported Feb. 28.

Matthew Valles, who previously was a fraud investigator in the company's Portland, Ore., location, claims that it was standard practice for the company to close accounts suspected of fraud rather than investigate them. He also alleged that the company does so under the pretext of a "business decision" in order to save money, the publication wrote.

Banks are required to investigate suspicious activities, such as unauthorized withdrawals or counterfeit checks, to determine whether fraud was actually committed.

According to the report, Wells Fargo customers have complained that the company quickly freezes or closes their accounts once suspicious activities come up, even if customers reported the activities themselves.

In January, Valles was fired for allegedly violating a security policy by leaving a notebook, which contains sensitive information, on his desk overnight. His complaint is filed with the Oregon Multnomah County Circuit Court.