Ex-Wells Fargo Exec Deserves Prison Over Fake Accounts, U.S. Says
Enu Mainigi, Tolstedt’s lawyer, didn’t immediately respond to an email outside regular business hours seeking comment. The attorney will get a chance to offer her alternative to prosecutors’ suggestion.
Tolstedt hindered an examination by the Office of the Comptroller of the Currency by failing to disclose statistics on the number of employees who were fired or resigned pending investigation for sales practices misconduct, prosecutors said.
She also failed to disclose that the bank proactively investigated only a very small percentage of employees who engaged in activity flagged as potential sales practices misconduct, according to the government.
In her plea deal, Tolstedt agreed to a ban on working in the banking industry and to pay a $17 million civil penalty to the OCC. Under the agreement she signed, she faced as long as 16 months in prison.
The case is U.S. v. Tolstedt, 23-cr-115, U.S. District Court, Central District of California (Los Angeles).
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