- Former Wells Fargo executive Carrie L. Tolstedt has agreed to plead guilty to obstructing a bank examination, becoming the first high-ranking executive to face criminal charges over the sham accounts scandal.
- Tolstedt's plea agreement calls for a sentence of up to 16 months in prison, though the crime carries a maximum sentence of five years.
- Tolstedt knowingly turned a blind eye to signs that bank employees were using illegal tactics to meet sales targets, according to prosecutors.
- The Securities and Exchange Commission is also pursuing litigation against Tolstedt for misleading investors about the bank’s sales tactics and financial health.
- Wells Fargo has paid billions in fines for opening accounts without customers’ authorization and other misdeeds, including a $1.7 billion fine imposed last year by the Consumer Financial Protection Bureau for errors in recording loan payments.
Former Wells Fargo Executive to Plead Guilty in Sham Accounts Scandal
Carrie L. Tolstedt, who ran the bank’s retail branches, faces up to 16 months in prison for obstructing a bank examination.
By Stacy Cowley
/cloudfront-us-east-2.images.arcpublishing.com/reuters/RCWZE2OK3BNCJNRVFOS74NYF7M.jpg)
