Former Wells Fargo executive Carrie Tolstedt avoids prison time for her role in fake-accounts fraud

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Source: CNN

Former Wells Fargo executive avoids prison time for her role in fake-accounts fraud

By Allison Morrow, CNN
Published 2:31 PM EDT, Fri September 15, 2023

New York (CNN) — Former Wells Fargo executive Carrie Tolstedt was sentenced to three years’ probation on Friday for her role in the bank’s sprawling fake-accounts scandal.

Tolstedt had agreed to plead guilty to the criminal charge of obstructing regulators’ investigation of the bank, which she left in 2016 as the scandal burst into the public arena. Her lawyers argued for her to be sentenced to probation, including six months of home confinement, rather than the 12-month prison sentence sought by prosecutors.

Wells Fargo has spent billions of dollars over the past eight years to settle allegations related to the accounts scandal, in which Tolstedt played a key role.

As head of Wells Fargo’s community bank, Tolstedt oversaw an aggressive “cross-selling” strategy that resulted in more than 2 million fake bank and credit card accounts being opened without customers’ consent or knowledge.

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Read more: https://edition.cnn.com/2023/09/15/business/wells-fargo-exec-charged-accounts-scandal/index.html