Ex-Wells Fargo CEO Stumpf, Tolstedt Misled Investors, SEC Says
- Stumpf will pay $2.5 million fine without admitting wrongdoing
- SEC seeks penalties, officer-director ban against Tolstedt
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Former Wells Fargo & Co. Chief Executive Officer John Stumpf and ex-top executive Carrie Tolstedt harmed shareholders by signing off on misleading statements about the success of the community banking business, the U.S. Securities and Exchange Commission said.
Stumpf, who retired in 2016 after the bank’s deceptions came to light, agreed to pay a $2.5 million fine to settle the allegations, the SEC said in a Friday statement. He and Tolstedt, who didn’t reach a settlement of the claims against her, knew or should have known that statements they signed attesting to the success of the bank’s “cross-sell metric” were false or misleading, the regulator said. Tolstedt also left the bank in 2016.