Tolstedt Carrey (Carrie Tolstedt)

Tolstedt Carrey (Carrie Tolstedt)

Biography

2023: Agree to pay $3 million fine for defrauding investors

On May 30, 2023, the U.S. Securities and Exchange Commission (SEC) reported that the former head of retail banking at Wells Fargo & Co. Carrie Tolstedt (Carrie Tolstedt) as part of the settlement agreement agreed to pay a fine of $3 million for deceiving investors.

As stated in the materials of the regulator, from mid-2014 to mid-2016, Tolstedt publicly described and recommended the "cross-sales indicator" of Wells Fargo as a means of measuring the financial success of the organization. However, in fact, this figure was overestimated. At the same time, Wells Fargo Bank opened millions of fake accounts. It also turned out that bank employees massively issued credit cards to customers without their consent. All these actions misled investors. The investigation found that Tolstedt made public, untrue statements at Wells Fargo conferences in 2014 and 2016.

In March 2023, Tolstedt agreed to plead guilty to obstructing a bank audit in connection with a high-profile fake account scandal. Then it was reported that she faces imprisonment for a period of 16 months.

As part of her settlement with the SEC, Carrie Tolstedt did not admit or deny her guilt. In addition to a civil fine of $3 million, she will pay $1,459,076 in compensation plus interest before making a decision in the amount of $447,874.

Companies [in this case, Wells Fargo] are not acting on their own. Where the facts demand it, we will hold senior executives accountable for conduct that violates securities laws, said Monique C. Winkler, regional director of the SEC San Francisco representative office.[1]

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