Ex-Wells Fargo exec to plead guilty for role in bank scandal

Mar 15, 2023, 5:14 PM | Updated: 5:36 pm

LOS ANGELES (AP) — A former Wells Fargo Bank executive accused of overseeing a ruse that created millions of bogus customer accounts has agreed to plead guilty to criminal charges likely to send her prison for her role in the scandal.

The agreement filed Wednesday in a Los Angeles federal court calls for the former Wells Fargo executive, Carrie Tolstedt, to serve a 16-month prison sentence for obstructing regulators’ investigation into abusive sales practices that culminated in the bank paying billions of dollars in fines. Tolstedt, 63, also agreed to pay a $17 million fine in a separate civil settlement with the government that also bans her from working again in the banking industry.

Prosecutors are requesting an April 7 court hearing to review the plea agreement.

Tolstedt was the longtime head of the Wells Fargo’s division responsible for its sprawling network of retail branches, before leaving in 2016 just before evidence of the bank’s abusive sales tactics surfaced. After previously denying any wrongdoing, Tolstedt becomes the first Wells Fargo executive to be held criminally culpable for a scandal that resulted in the firing of 5,300 employees for falsifying bank records and other ethics violations.

San Francisco-based Wells Fargo had previously admitted that its ambitious sales goals had fostered a culture that prodded its branch employees to open millions of unauthorized and fraudulent accounts from 2002 to 2016. The U.S. Justice Department alleged Tolstedt — now a resident of Scottsdale, Arizona — knew about the abuses dating back to 2004 and subsequently tried to cover up the misconduct in a memo prepared for regulators looking into the practices in 2015.

“Obstructing an investigation compromises the mission of those seeking the truth, and we will hold accountable any individual who attempts to conceal wrongdoing.” said Acting United States Attorney Joseph T. McNally.

United States News

Associated Press

‘Catch-and-kill’ to be described to jurors as testimony resumes in hush money trial of Donald Trump

NEW YORK (AP) — A longtime tabloid publisher was expected Tuesday to tell jurors about his efforts to help Donald Trump stifle unflattering stories during the 2016 campaign as testimony resumes in the historic hush money trial of the former president. David Pecker, the former National Enquirer publisher who prosecutors say worked with Trump and […]

6 hours ago

Associated Press

America’s child care crisis is holding back moms without college degrees

AUBURN, Wash. (AP) — After a series of lower-paying jobs, Nicole Slemp finally landed one she loved. She was a secretary for Washington’s child services department, a job that came with her own cubicle, and she had a knack for working with families in difficult situations. Slemp expected to return to work after having her […]

7 hours ago

Several hundred students and pro-Palestinian supporters rally at the intersection of Grove and Coll...

Associated Press

Pro-Palestinian protests sweep US college campuses following mass arrests at Columbia

NEW YORK (AP) — Columbia canceled in-person classes, dozens of protesters were arrested at New York University and Yale, and the gates to Harvard Yard were closed to the public Monday as some of the most prestigious U.S. universities sought to defuse campus tensions over Israel’s war with Hamas. More than 100 pro-Palestinian demonstrators who […]

9 hours ago

Ban on sleeping outdoors under consideration in Supreme Court...

Associated Press

With homelessness on the rise, the Supreme Court weighs bans on sleeping outdoors

The Supreme Court is wrestling with major questions about the growing issue of homelessness as it considers a ban on sleeping outdoors.

10 hours ago

Arizona judge declares mistrial in case of rancher who shot migrant...

Associated Press

Arizona judge declares mistrial in the case of a rancher accused of fatally shooting a migrant

An Arizona judge declared a mistrial in the case of rancher accused of killing a Mexican man on his property near the U.S.-Mexico border.

10 hours ago

Associated Press

Trial opens for former Virginia hospital medical director accused of sexual abuse of ex-patients

NEW KENT, Va. (AP) — The former longtime medical director of a Virginia hospital that serves vulnerable children used physical examinations as a “ruse” to sexually abuse two teenage patients, a prosecutor said Monday, while the physician’s attorney “adamantly” denied any inappropriate conduct. The trial of Daniel N. Davidow of Richmond, who for decades served […]

11 hours ago

Sponsored Articles


Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.


Fiesta Bowl Foundation

The 51st annual Vrbo Fiesta Bowl Parade is excitingly upon us

The 51st annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe is upon us! The attraction honors Arizona and the history of the game.

(KTAR News Graphic)...

Boys & Girls Clubs

KTAR launches online holiday auction benefitting Boys & Girls Clubs of the Valley

KTAR is teaming up with The Boys & Girls Clubs of the Valley for a holiday auction benefitting thousands of Valley kids.

Ex-Wells Fargo exec to plead guilty for role in bank scandal