SEC charges former Wells Fargo CEO and top executive with misleading investors over sales practices

[Eugene]

Source: Reuters

U.S. LEGAL NEWS
NOVEMBER 13, 2020 8:26 AM UPDATED AN HOUR AGO

SEC charges former Wells Fargo CEO and top executive with misleading investors over sales practices

By Pete Schroeder
2 MIN READ

WASHINGTON (Reuters) - The Securities and Exchange Commission charged former Wells Fargo CEO John Stumpf and retail banking head Carrie Tolstedt with misleading investors, the watchdog announced Friday.

The agency claimed that the former executives misled investors about the widespread sales practice problems at the bank. Stumpf agreed to pay a $2.5 million penalty to settle the charges, while the SEC will litigate fraud charges against Tolstedt in court.

A lawyer for Stumpf did not immediately respond to a request for comment. An attorney for Tolstedt said she was an “honest and conscientious executive,” and the SEC charges are “unfair and unfounded.”

The new charges mark the latest in a long-running set of legal and regulatory woes for the bank and its former leadership, after the firm was embroiled in a massive scandal over the creation of fake accounts by employees. In February, the bank agreed to pay $3 billion to settle a joint probe by the SEC and Justice Department.

-snip-

Read more: https://www.reuters.com/article/us-usa-wellsfargo-sec/sec-charges-former-wells-fargo-ceo-and-top-executive-with-misleading-investors-over-sales-practices-idUSKBN27T1YN

[underpants]

1. No! Not Wells Fargo!!!

[Wellstone ruled]

2. Wow,to think

we are still seeing enforcement actions for crimes committed some 25 years ago. Still surprised Wells has not lost it's Charter by this late date.

[bluedigger]

3. It's one thing to cheat the rubes, but don't con the investors.

Up with that, we will not put!