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Wells Fargo Faces Lawsuit Alleging. Insurance Journal A new lawsuit accuses Wells Fargo & Co. of racketeering violations and fraud after the bank admitted to charging several hundred thousand borrowers for auto insurance. Embattled Wells Fargo now rocked by car insurance scandal. The wheels are coming off the wagon at Wells Fargo again. The beleaguered bank, which lost its CEO Abington last year because of a wideranging fake accounts. Another Disaster For Wells Fargo Troubled Bank Admits. Wells Fargo has admitted it placed hundreds of thousands of unnecessary insurance contracts with its auto loan customers. Betweenand 2017, it placed.