Former Wells Fargo CEO Has to Pay $17.5 Million For Sales Scandal

John Stumpf, the former CEO of Wells Fargo, was barred from ever working at a bank and now has to pay $17.5 million in connection to scandals at his former bank.

On Thursday the U.S. government announced that Stumpf would have to pay the money for scandals where millions of fake accounts were set up to meet sales quotas.

Stumpf’s settlement aditionally declares he shall not participate “in any manner” at any bank regulated by the OCC or participate or attempt to participate in a bank’s corporate board votes.

The Office of the Comptroller of the Currency annnouced that the former head of the bank’s Community Bank unit, Carrie Tolstedt, is fighting allegations against her. The regulator seeks a prohibition order and $25 million from her.

The regulator also said it is planning to target other individuals, including former executives, for their role in the scandals.

“The actions announced by the OCC today reinforce the agency’s expectations that management and employees of national banks and federal savings associations provide fair access to financial services, treat customers fairly, and comply with applicable laws and regulations,” Comptroller of the Currency Joseph Otting said.

Wells Fargo says it “will not make any remaining compensation payments that may be owed to these individuals” named in the OCC’s notice.

The notice from the Office of the Comptroller of the Currency said the regulator plans to target other individuals, including former executives, for their role in the scandals.

Wells Fargo CEO Charlie Scharf told the bank’s employees that “the OCC’s actions are consistent with my belief that we should hold ourselves and individuals accountable.”

“They also are consistent with our belief that significant parts of the operating model of our Community Bank were flawed,” he added. “At the time of the sales practices issues, the Company did not have in place the appropriate people, structure, processes, controls, or culture to prevent the inappropriate conduct.”

Scharf said “Wells Fargo will not make any remaining compensation payments that may be owed to these individuals while we review the filings.”

Disclaimer: We have no position in Wells Fargo & Co. (NYSE: WFC) and have not been compensated for this article.