A former loan originator at Wells Fargo & Co. has sued the company — alleging that he was fired because he would not participate in illegal activity as demanded by his supervisor.
Thomas Johnson worked for the San Francisco-based company from 1994 until 2004. He again worked at Wells Fargo’s Beach Cities branch from 2008 until his termination in 2013.
Johnson claims he was a top performing loan originator who consistently ranked among the top-10 producers by the time he left.
He had an annual compensation package valued at around $245,000, according to court documents.
But Johnson alleges that his boss, branch manager Imtiaz “Taz” Dadabhoy, directed him to engage in illegal conduct and violate the law.
This included allegedly paying kickbacks to junior loan officers, using company funds to pay strippers and prostitutes on company business trips, and including subordinates in the illegal activities. He also is accused of using cocaine during one business trip.
The branch manager is additionally accused of improperly instructing Johnson how to handle loans — even though this would have resulted in violations of federal and state law.
Johnson alleges that subsequent reprimands were received from Dadabhoy in retaliation for his refusal to participate in the illicit activities. Dadabhoy allegedly threatened to fire Johnson if he didn’t do what he was told.
Johnson claims he refused to pay kickbacks to junior loan officers. In retaliation, he alleges he wasn’t allowed to hire junior loan officers.
So he reported Dadabhoy to human resources and other management personnel at Wells Fargo. He said he believes that other employees made similar complaints about Dadabhoy.
“Rather than investigate the complaints, however, Wells Fargo purportedly condoned, authorized, and ratified Dadabhoy’s conduct and his retaliation against Johnson,” court document state.
Johnson was terminated in June 2013 for violating company policy.
“Johnson contends that the policy pursuant to which he was terminated is used subjectively as a sword to terminate employees that Wells Fargo lacks legitimate grounds to discharge,” according to case documents.
Johnson filed a lawsuit against Wells Fargo in Los Angeles Superior Court on July 23 of this year.
The lawsuit alleges wrongful termination in violation of public policy, defamation, unlawful retaliation and failure to prevent discrimination, harassment and retaliation. The actions allegedly violated California’s Fair Employment and Housing Act, California Government Code § 12940, et seq., and California Labor Code § 1102.5(c).
The case was removed to federal court in Los Angeles in August.
Wells Fargo moved to dismiss the case in September.
That same month, Johnson filed a motion to remand back to state court.
On Nov. 19, the federal court granted the motion to remand, though it denied Johnson’s request for attorneys’ fees.
Wells Fargo’s motion to dismiss was denied as moot.
