Wells Fargo Executive Carrie Tolstedt Avoids Prison in Fake Accounts Scandal, Gets 3 Years Probation
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Former Wells Fargo executive Carrie Tolstedt was sentenced to 3 years probation for her role in the fake accounts scandal. Prosecutors sought a 12-month prison sentence.
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As head of the community bank, Tolstedt oversaw an aggressive cross-selling strategy that resulted in over 2 million fake accounts opened without customers' consent.
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Tolstedt signed off on inaccurate disclosures about Wells Fargo's cross-sell metrics when she knew or should have known they were false.
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Tolstedt paid over $20 million to settle civil charges but received a $125 million retirement package when she left Wells Fargo in 2016.
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Wells Fargo has struggled to recover from the scandal, with the Fed capping its asset growth until it addresses compliance failures.