http://arstechnica.com/business/2016...ts-since-2005/

Wells Fargo employees were creating fake accounts in customers? names without their authorization as early as 2005, according to a letter obtained by Vice News. The letter comes from a former branch manager at a Washington state-based Wells Fargo Branch and was written in January 2006. Wells Fargo recently paid fines totaling $185 million for the creation of 2 million unauthorized accounts since 2011. The bank has said that it will investigate additional unauthorized accounts opened in 2010 and 2009, but it has not acknowledged that such a practice occurred as early as 2005.

Former branch manager Dennis Hambek wrote the 2006 letter to Carrie Tolstedt, who was Wells Fargo?s head of regional banking at the time. In it, Hambek documents a few instances of alleged misconduct, including employees applying for loans far greater than what their customers requested, as well as opening accounts without the customers? consent.

Tolstedt became Wells Fargo?s Head of Community Banking in 2007. Just weeks before the news of Wells Fargo employee misconduct broke, she retired at the age of 56, entitling her to a severance and a bonus at the end of the year. Last month, Tolstedt forfeited her severance as well as $19 million in bonuses after Wells Fargo CEO John Stumpf was questioned by congressional committees on the company?s scandal.

Whether or not Tolstedt read or acted upon Hambek?s letter is unclear, but Vice News published what appears to be the receipt certifying the letter.

Hambek, who was transferred to the poorly-performing West Yakima after working in Ellensburg, wrote in the letter that he was instructed in April 2005 to ?bring the branch 100 percent in core sales, profit, and cross-sell by June 30, 2005, which was impossible."

Meanwhile, Hambek claims, the Ellensburg branch was thriving due to management unscrupulously allowing unethical ?gaming.? He wrote:
... comments have been made by Personal Bankers at the Ellensburg Branch that they are exceeding their goals due to the fact that when a customer applies for a $10,000 personal loan, the PB gets them a $50,000 [loan]. Smart Fit then advances the $50,000 and has the customer repay $40,000 immediately.
...

There are instances of gaming in opening new accounts. One example, a customer applied for a mortgage loan at the Selah branch and was given a PMA checking, growth savings, and a debit card, opened by a PB located in Ellensburg. The customer stated he had never met with the PB or been to the Ellensburg Branch. He never signed any documents or, worse yet, never received any disclosures.