Wells Fargo is being sued by one of its former personal bankers who alleges he was fired for reporting racial discrimination and profiling of potential customers by the firm, according to ThinkAdvisor..
Thomas Davis, who was hired by Wells Fargo in 2016, filed his lawsuit in the U.S. District Court for the District of Colorado.
Davis alleges that he initially reported a pay disparity between his position and junior positions he was coaching, “and reported how his managers were requiring junior team members to identify and weed out potential customers by using racial and socioeconomic markers.”
He added that Wells Fargo managers implemented assessments based on “a potential customer’s physical appearance, including race, brand of apparel, overall appearance, etc.,” to determine which Wells products might best suit the customer.
Davis alleges that he was subsequently “disproportionately scrutinized” and, in April 2023, investigated for unethical behavior and then repeatedly questioned about his scheduled short-term disability leave. According to the complaint, Wells Fargo then “recalled Mr. Davis early from previously approved leave to summarily terminate his employment.”
Davis alleges claims for relief for unlawful retaliation and discrimination in violation of the Civil Rights Act and the Americans with Disabilities Act of 1990, unlawful retaliation under the Fair Labor Standards Act of 1938, and unlawful interference and retaliation under the Family and Medical Leave Act, as well as civil rights violations under Colorado law.
He also accuses Wells Fargo of incorrectly reporting the reasons for his firing to FINRA on his U5 termination form, which he said impairs his ability to find employment in the financial industry.
According to BrokerCheck, Wells Fargo terminated Davis in July 2023 after he admitted “improper manipulation of incentive system by submission of an invalid partner referral.” The firm wrote, “No customer harm identified.”
The lawsuit said Davis managed a book of business worth more than $192 million in direct assets and was promoted in 2019 to senior branch premier banker.
In an email to ThinkAdvisor, a Wells Fargo spokesperson said: “Wells Fargo has investigated these allegations and found them to lack merit. We do not tolerate discrimination, and we value and promote diversity, equity and inclusion in all aspects of our business and at all levels. In addition, Wells Fargo has extensive policies and procedures related to prohibiting retaliation as well as providing leaves and accommodations for employees.”
Lewitas Hyman routinely represents financial advisors and other registered representatives who were wrongfully terminated by their firm. Our attorneys take a thoughtful approach to clients’ cases by first trying to work with the terminating firm concerning the Form U5 disclosure. When necessary, our attorneys are prepared to file wrongful termination and defamation claims. We are prepared to assist when the circumstances surrounding your termination are wrongful. Contact Lewitas Hyman at (888) 655-6002 or through our online contact form for a free consultation.