This was the only way for the small brand to take a toehold in the market. State-backed operatives from North Korea? When the Singapore police raided Wirecards offices there a month later, BaFin banned short-selling of Wirecard stock for two months. In December 2019,The New York Times published acomprehensive analysis ondozensof environmental rules and regulations that have been rolled back under the Trump administration. 2023 Fortune Media IP Limited. This article uncovers some of the less talked about company scandals and how they affected others during the health crisis. In 2018, an asset cap was placed on Wells Fargo due to employees creating fake accounts. The bank discovered it had created 3.5 million fake accounts, not 2 million. Fast-forward to 2020: In January,Stumpf agreed to pay a $17.5 million fine to the Office of the Comptroller of the Currency for his role in the scandal, and the OCC sought $37.5 million in fines from five other ex-officers. Those cases appear to be only the tip of the iceberg; there are suggestions that hundreds of millions, if not billions of dollars of taxpayer funds,may have been fraudulently allocatedthrough PPP, with government watchdogsacknowledgingthe possibility of widespread potential fraud and abuse.. Former CEO Markus Braun seemed to think the financial services company had $2.1 billion that didnt exist, to put the most charitable construction on events; the company collapsed in June and investors lost billions. Join Compliance Week for one year and receive access to every article, special report,and video on our site in addition to unlimited live, instructor-led CLE/CPEtraining sessions. However, customers quickly started realizing their requests to withdraw their money was not granted. Those cases appear to be only the tip of the iceberg; there are suggestions that hundreds of millions, if not billions of dollars of taxpayer funds,may have been fraudulently allocatedthrough PPP, with government watchdogsacknowledgingthe possibility of widespread potential fraud and abuse.. In August, McDonalds filed a lawsuit against Easterbrook, alleging that he had physical sexual relationships with three McDonalds employees in the year before he was fired and approved stock grants worth hundreds of thousands of dollars to one of those women. Top 10 technology and ethics stories of 2020 | Computer Weekly In addition to the offensive content, it was discovered that Zoom neglected to use end-to-end encryption for video meetings, which exposed the personal information of millions of users. Terms & Conditions. Wells Fargo was embarrassed yet again after it was revealed that more than 100 employees created fake profiles to file fraudulent applications. Wells Fargo can't seem to escape its troubled past - CNN The parallel scandal is the failure of regulators and auditors to spot the looming disaster despite years of warning signs. After an initial investigation, 73 cadets were accused of cheating on the online calculus test. Ethical dilemmas are commonplace in society, but when a business experiences one, the impact (and potential fallout) can have a wide reach. And that helped raise awareness and improve training at many companies to guard against further social engineering hacks, says Tobac. Thats a major reason Wells Fargo has badly underperformed the S&P 500 and the other biggest banks (JPMorgan Chase, Bank of America, Citigroup) since the scandal began.