Three former Wells Fargo executives face hefty fines over the mega-bank’s fake accounts scandal after a judge recommended they be forced to pay $18.5 million in collective penalties for failing to stop the years-long scheme.
Federal Administrative Law Judge Christopher McNeil found in a report issued this week that former Wells Community Bank Group risk officer Claudia Russ Anderson, former chief auditor David Julian and former executive auditor director Paul McLinko were all culpable and that their “conduct constituted unsafe or unsound practice and violated the fiduciary duties” owed to the bank. He ordered them to pay civil penalties of $10 million, $7 million and $1.5 million, respectively.
McNeil made the recommendation to the Office of the Comptroller of the Currency, which will make the final determination. According to American Banker, which first reported the proposed penalties, attorneys for the former executives claim their clients did nothing wrong and plan to appeal the ruling.
Read the source article at finance.yahoo.com