Wells Fargo Sued for Allegedly Freezing Customer’s Funds

A new lawsuit alleges Wells Fargo seized a customer’s funds and shut down his bank account over a legitimate $207,765 deposit.

Ethan Parker claims that he opened a new bank account late last year to deposit an extensive check he received following the death of his adoptive mother.

Parker claims that 15 days after the deposit, the bank closed the account, removed the funds, and accused him of fabricating the check.

According to the lawsuit, Parker subsequently secured a letter from the company that issued the check confirming its validity.

However, the bank remained unmoved and denied Parker access to the funds without “adequate explanation.”

The lawsuit requests that the court compel Wells Fargo to disclose the funds and states that Parker has suffered “damages to be proven at trial.”

A spokesperson for Wells Fargo told Triangle Business Journal that the bank intends to defend its actions.

“We vehemently disagree with the allegations made in Mr. Parker’s lawsuit and will defend our position because we believe Wells Fargo took the proper actions.”

Parker claims he is now unable to make mortgage payments, and his attorneys say they are searching for other individuals whose bank accounts were “improperly closed” due to allegations of fraud.

Wells Fargo agreed to pay to the U.S. Securities and Exchange Commission a $35 million civil penalty last month for allegedly overcharging customers for investment advice.

The bank resolved the dispute without admitting or denying the allegations.