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Wells Fargo Exec Implicated in Fake Accounts Scandal Could Face Jail Time

WASHINGTON, D.C. – The former head of Wells Fargo’s retail bank pleaded guilty to obstructing an examination and will pay a $17 million fine for her role in the bank’s sweeping fake accounts scandal. Carrie Tolstedt faces up to 16 months in prison under the plea agreement, according to federal prosecutors in Los Angeles. Public Citizen documented the extent of Wells Fargo’s cross-selling mania in a 2016 report. Bartlett Naylor, financial policy advocate for Public Citizen, released the following statement:

“Finally, a banker is headed for jail. But Tolstedt didn’t do this alone; she followed orders. A Public Citizen report outlined the pervasive, long-term nature of Wells Fargo’s consumer abuses. It could not have been just Tolstedt. Those above her must inhabit a nearby cell.”