Wells Fargo & Co.’s former head of retail banking, Carrie Tolstedt, agreed to pay $3 million to settle a Securities and Exchange Commission case over misleading investors about a key metric the lender used to gauge success.
The settlement, which is subject to court approval, follows Tolstedt’s agreement in March to plead guilty to obstructing a probe of the bank’s practice of opening millions of accounts for customers without their authorization. Tolstedt faces as long as 16 months in prison under her plea agreement, according to a statement from the Department of Justice at the time. Her sentencing is set for September.
Enu Mainigi, Tolstedt’s lawyer, didn’t immediately respond to a phone message and email seeking comment on the settlement. She neither admitted nor denied the SEC’s allegations in the settlement.
Wells Fargo agreed to pay $3 billion in penalties in 2020 after the government brought cases against the bank for opening checking and credit accounts without customers’ authorization to meet aggressive sales goals. A representative for the bank declined to comment on the SEC’s settlement with Tolstedt.
“Companies do not act on their own. Where the facts warrant it, we will hold senior executives accountable for conduct that violates the securities laws,” Monique C. Winkler, head of the SEC’s San Francisco office, said in a statement.
The SEC alleged that Tolstedt made public statements and signed disclosures that misled investors about a metric of the financial success of the San Francisco-based bank. The regulator said that she knew, or was reckless in not knowing, that the measure was inflated by accounts and services that were “unused, unneeded, or unauthorized.” Her alleged misconduct occurred between 2014 and 2016, the SEC said.
In addition to the $3 million fine, the SEC said that Tolstedt agreed to pay back ill-gotten gains of almost $1.5 million, plus interest of about $450,000.
Altruist founder and CEO Jason Wenk shares insights on the custodial platform's refresh, how it's striking a chord among entrepreneurial advisors, and what's ahead after its latest $152 million funding round.
Following Wall Street Journal reporting from unnamed sources, the Chicago-based financial giant stressed its commitment to "delivering long-term value to our stakeholders."
The advisor, Andrew Nash of El Capitan Advisors, used the funds to buy a house, according to the SEC.
The digital investment platform's announcement of a confidential submission to the SEC comes amid a broader trend of consumer fintech firms going to market.
The Canadian startup's latest funding round, raising $60 million from the banks and other investors, is set to fuel its continued expansion into the US.
Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave
