Sumability
Topics
  1. Home
    2. >
  2. Business 💼
Posted

Former Wells Fargo Executive Sentenced for Role in Sham Accounts Scandal

  • Former Wells Fargo executive Carrie L. Tolstedt sentenced to 6 months home confinement and 3 years probation for role in sham accounts scandal.

  • Prosecutors sought 1 year prison sentence, called it deterrent to other executives.

  • Tolstedt was head of retail banking during years bank opened potentially millions of fraudulent accounts.

  • Tolstedt only high-ranking Wells Fargo executive criminally charged; pleaded guilty to obstructing an examination.

  • Wells Fargo still operating under asset cap restriction from Federal Reserve due to scandals under Tolstedt's watch.

nytimes.com
Relevant topic timeline:
Wells Fargo overcharged nearly 11,000 investment accounts with advisory fees, SEC alleges
Wells Fargo has agreed to pay a $35 million civil penalty to settle allegations that it overcharged nearly 11,000 investment advisory clients a total of around $27 million in fees, according to the Securities and Exchange Commission.