Former Wells Fargo executive Carrie Tolstedt gets probation for the bank’s sweeping fake accounts scandal instead of jail time as argued by her defense attorney on September 15, Friday.
Wells Fargo Executive’s Scandal Report
The Wells Fargo executive was able to evade prison time after U.S. District Judge Josephine Staton in Los Angeles agreed with her lawyer’s argument of three-year probation including six months of home confinement from the originally sought one-year prison term for the Wells Fargo executive of prosecutors. According to Staton, the Wells Fargo executive doesn’t pose a risk to society and it would be unfair to solely indict her for the misconduct.
The 63-year-old Wells Fargo executive admitted to one count of obstruction of a government probe in March for the misconduct at San Francisco-based Wells Fargo’s retail and small business lending business, which the Wells Fargo executive spearheaded from 2007 to 2016. The Wells Fargo Executive also agreed to a $17 million civil penalty as well as permanently evicting her from working in the banking industry as part of her plea agreement.
Wells Fargo Executive’s Plea Agreement
According to a report, approximately $5 billion was paid by Wells Fargo to settle multiple claims over the fake account scandal. Aside from the Wells Frago executive’s probation, the Wells Fargo executive will reportedly pay a $100,000 fine and serve 120 hours of community service.