A former Wells Fargo Bank executive accused of overseeing a ruse that created millions of bogus customer accounts has agreed to plead guilty to criminal charges likely to send her prison for her ro…
LOS ANGELES — A former Wells Fargo Bank executive accused of overseeing a ruse that created millions of bogus customer accounts has agreed to plead guilty to criminal charges likely to send her prison for her role in the scandal.
The agreement filed Wednesday in a Los Angeles federal court calls for the former Wells Fargo executive, Carrie Tolstedt, to serve a 16-month prison sentence for obstructing regulators’ investigation into abusive sales practices that culminated in the bank paying billions of dollars in fines. Tolstedt, 63, also agreed to pay a $17 million fine in a separate civil settlement with the government that also bans her from working again in the banking industry.
San Francisco-based Wells Fargo had previously admitted that its ambitious sales goals had fostered a culture that prodded its branch employees to open millions of unauthorized and fraudulent accounts from 2002 to 2016. The U.S. Justice Department alleged Tolstedt — now a resident of Scottsdale, Arizona — knew about the abuses dating back to 2004 and subsequently tried to cover up the misconduct in a memo prepared for regulators looking into the practices in 2015.
“Obstructing an investigation compromises the mission of those seeking the truth, and we will hold accountable any individual who attempts to conceal wrongdoing.” said Acting United States Attorney Joseph T. McNally.
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