Wells Fargo is facing scrutiny over its response to the reporting of an alleged rape by one of its employees. The San Francisco bank took almost a year to investigate the incident, according to a lawsuit filed in California this month.
The plaintiff, a former wealth advisor at the bank, said that she was raped by a colleague, Eric Pagel, on a business trip. Pagel is a senior investment strategist and managing director who still works for Wells Fargo, according to a source with knowledge of the matter. The alleged rape took place in January 2020, and the plaintiff alleges that she reported it to the bank's ethics hotline in November of that year.
After relaying her account to the bank, the plaintiff's clients were reassigned, and she was excluded from key client communications and lucrative accounts, according to the lawsuit. Wells Fargo's delay in investigating the case forced the plaintiff to resign from the bank in July 2021, the complaint states.
"We take all allegations of misconduct very seriously and are reviewing the lawsuit," Wells Fargo said in a statement.
The bank conducted a thorough investigation of the incident, according to the source with knowledge of the matter.
Pagel could not be reached for comment.
Before the alleged incident, Pagel made sexually charged comments to the plaintiff, according to the complaint. The plaintiff, who worked for Wells Fargo in Southern California, filed the lawsuit anonymously.
When the plaintiff asked Wells Fargo for an update on the case, she was told the people she named as potential witnesses to Pagel's alleged misconduct had yet to be interviewed by the bank, said Ron Zambrano, the plaintiff's attorney. Wells Fargo also refused to allow the plaintiff to make a record of her conversations with the bank regarding the case, according to Zambrano.
"The action itself is gross, and the lack of reaction from the employer is just as gross," Zambrano said in an interview.
Five months after reporting the alleged incident to the bank, the plaintiff reported it to the Equal Employment Opportunity Commission, according to the lawsuit. The commission is the federal agency tasked with investigating workplace discrimination.
According to the EEOC, companies that receive reports of sexual harassment are required to develop anti-harassment efforts that include: timely responses and investigations; investigators who document all steps taken; mechanisms to determine whether individuals who file reports experience retribution; and the authority to impose sanctions on those who engage in retaliation.
Harassment includes actual or attempted rape or sexual assault under the EEOC's definition.
Investigations are required to be prompt and adequate, said Jenny Schwartz, a partner at Outten & Golden LLP who has represented clients in a range of employment matters, including sexual harassment.
"The intent behind that requirement is, theoretically, to prevent further harassment and ensure that perpetrators are identified and dealt with appropriately," Schwartz said. "Unfortunately, things don't always work out as they should."
An adequate investigation includes interviewing the complainant, potential witnesses and the alleged perpetrators, Schwartz said.
Harassment is illegal when it results in an adverse employment action, including demotion or firing, according to the EEOC. The retaliation described by the plaintiff violates the Fair Employment and Housing Act, a California state law designed to protect employees from discrimination, harassment and retaliation in the workplace, according to the suit. Under the law, employers are strictly liable for the conduct of its supervisors and agents.
The suit seeks damages for unpaid wages, lost earnings, emotional distress, medical expenses and attorneys fees. It also requests a jury trial, which the plaintiff's attorney said could take place sometime in 2024.
Wells Fargo isn't the first bank to receive reports of sex-based discrimination in its ranks.
In 2018,
The bank later agreed to pay Malik an undisclosed multimillion-dollar sum to settle claims of defamation and discrimination brought by Malik, who is of Middle Eastern descent.
