Tolstedt fined $17M and barred from industry

The Office of the Comptroller of the Currency on Wednesday announced it has issued a prohibition order and a $17 million civil money penalty by consent against Carrie Tolstedt, former head of Wells Fargo Bank, N.A.'s Community Bank, for her role in systemic sales practices misconduct at the bank.

The settlement resolves the administrative enforcement action against Ms. Tolstedt that began when the OCC filed a notice of charges against her on January 23, 2020. The notice alleged that Ms. Tolstedt was significantly responsible for the systemic sales practices misconduct at the bank. The Notice further alleged that the bank’s business model imposed unreasonable sales goals on its employees, along with unreasonable pressure to meet such goals.

The settlement the OCC announced today is in addition to the settlements with seven other former Wells Fargo senior bank executives announced on January 23 and September 21, 2020, and January 15, 2021.

It appears that settlements have not yet been reached with former Community Bank Group risk officer Claudia Russ Anderson, former executive audit director Paul McLinko, and former chief auditor David Julian.