Former Wells Fargo & Co. govt Carrie L. Tolstedt prevented jail time however was sentenced to a few years of probation together with six months of dwelling confinement on Friday for her half within the financial institution’s fake-account scandal, which resulted in billions of {dollars} in fines and hundreds of layoffs.
Tolstedt’s sentence handed down in U.S. District Court for the Central District of California, in Los Angeles additionally included a $100,000 nice and 120 hours of group service.
Federal prosecutors earlier this month filed a suggestion for a 12-month sentence, adopted by one yr of probation, in response to a courtroom submitting. Tolstedt’s attorneys requested for 3 years of probation, the Wall Street Journal reported.
While former Wells Fargo
WFC,
executives, together with former Chief Executive John Stumpf, have been banned for all times from the banking enterprise, Tolstedt is the one govt so far to obtain a legal sentence and face the potential of jail time.
“Sentencing such a corporate executive to six months of home confinement presumably in a mansion cannot seriously be considered a punishment,” mentioned Dennis Kelleher, co-founder and chief govt of Better Markets, a shopper advocacy group.
Tolstedt agreed to a most 16-month sentence in March when she pled responsible to obstructing a authorities examination into the financial institution’s widespread gross sales misconduct, together with the opening of hundreds of thousands of unauthorized financial institution accounts.
Government prosecutors had mentioned a16-month time period could be on the excessive finish of the sentencing guideline vary for the obstruction offense.
Tolstedt retired in 2016, across the time of Wells Fargo’s fake-account scandal. In May, she paid a $3 million civil penalty to the Securities and Exchange Commission to settle allegations that she misled buyers concerning the success of Wells Fargo’s Community Bank.
In March, she additionally was assessed a $17 million civil penalty by the Office of the Comptroller of the Currency for her position in “systemic sales practices misconduct,” the federal government mentioned.
She additionally had $65 million in compensation clawed again by Wells Fargo after the scandal, which additionally resulted within the ouster of Stumpf, in addition to billions in fines for the corporate. Thousands of staff have been additionally fired because the financial institution took motion to get its gross sales practices in line.
Also learn: Wells Fargo employee says employment on the financial institution was extra aggravating than Gulf warfare army service
Source web site: www.marketwatch.com
