WASHINGTON–A $17 million civil money penalty (CMP) has been assessed Wednesday against the former head of Well Fargo Bank’s community bank for her alleged role in systemic sales practices misconduct—better known as the fake accounts scandal, the regulator of national banks said.
The Office of the Comptroller of the Currency (OCC) said the penalty against Carrie Tolstedt, former head of Wells Fargo Bank, N.A.’s Community Bank, resolves an administrative enforcement action taken against her more than three years ago in January 2020.
According to the OCC, the allegation was the bank’s business model imposed “unreasonable sales goals on its employees, along with unreasonable pressure to meet such goals.” Millions of bogus accounts were opened by staff attempting to meet the goals that had been set for them.
“It is the OCC’s expectation that all employees of national banks and federal savings associations, including senior executives, treat customers fairly, comply with the law, and promote safe and sound banking practices,” the agency said in a statement.
The OCC said the $17 million civil money penalty against Tolstedt has been paid to the U.S. Treasury.
Tolstedt, 63, also faces up to 16 months in prison.
As CUToday.info reported, in 2020 Wells Fargo paid a $3 billion fine to settle the investigation by the Justice Department and SEC.
Additional Settlements
The penalty assessed against Tolstedt, the agency said, was in addition to settlements announced previously with seven other former Wells Fargo Bank senior executives. Those included:
- Claudia Russ Anderson, Community Bank Group Risk Officer, Prohibition Order and $5 million CMP (Jan. 23, 2020)
- James Strother, general counsel, Personal Cease & Desist (PC&D) Order and $5 million CMP (Jan. 23, 2020) (Strother was also assessed at $3.5 CMP on Jan. 15, 2021)
- David Julian, chief auditor, PC&D Order and $2 million CMP (Jan. 23, 2020)
- Paul McLinko, Executive Audit Director, PC&D Order and $500,000 CMP (Jan. 23, 2020)
- Matthew Raphaelson, former Community Bank Group finance officer, Prohibition Order and $925,000 CMP (Sept. 21, 2020)
- Kenneth Zimmerman, former head of Community Bank Deposit Products Group, PC&D and $400,000 CMP (Sept. 21, 2020)
- Tracy Kidd, former Head of Community Bank Human Resources, PC&D and $350,000 CMP (Sept. 21, 2020)
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