A qui tam lawsuit filed against Wells Fargo by two whistleblowers has been unsealed. The suit claims that Wachovia, which was bought by Wells Fargo in 2008, defrauded the federal government by accepting billions from federal programs while engaging in and concealing fraudulent banking practices, including falsifying certifications of the bank's financial statements. Wells Fargo is accused of not being upfront about the fraud inherited from Wachovia.
Under the qui tam provisions in the federal False Claims Act (FCA), employees, corporations, and private or public interest organizations may sue a company that defrauds the federal government. The legal action is brought on behalf of the government and the whistleblower, and an individual who brings a qui tam claim may stand to receive a sizable reward.