November 20, 2020

Ex-Wells Fargo CEO John Stumpf misled investors in accounts scam: SEC

first_imgJohn Stumpf, chief executive officer of Wells Fargo & Co., waits to begin a House Financial Services Committee hearing in Washington, D.C., U.S., on Thursday, Sept. 29, 2016.Andrew Harrer | Bloomberg | Getty Images Wells Fargo was later found to have inflated that metric by putting millions of customers into products without their consent, a scandal that cost Stumpf his job in 2016 and even that of his successor Tim Sloan. Current CEO Charlie Scharf took over a year ago and has been tasked with overhauling the fourth biggest U.S. bank and satisfying regulators’ demands for better controls.“If executives speak about a key performance metric to promote their business, they must do so fully and accurately,” said Stephanie Avakian, director of the SEC’s Division of Enforcement.The SEC’s complaint, filed in California, charges Tolstedt with fraud and seeks penalties and to ban her from being an officer or director of a public company.- Advertisement – Ex-Wells Fargo CEO John Stumpf and former deputy Carrie Tolstedt were charged by the Securities and Exchange Commission with misleading investors about the bank’s success in selling multiple products to customers.Stumpf agreed to pay a $2.5 million civil penalty to resolve the matter, allowing him to avoid admitting or denying the charges, the SEC said Friday.The two executives had certified in 2015 and 2016 investor disclosures that touted the firm’s supposedly robust “cross-sell” metric, despite knowing it was misleading, the SEC said in a statement. The metric is an industry term for how many products a single customer has.- Advertisement – According to the SEC’s complaint, Tolstedt publicly endorsed the firm’s vaunted cross-sell metric from 2014 through 2016, despite the fact that it was “inflated by accounts and services that were unused, unneeded, or unauthorized.”In an e-mailed statement, Tolstedt’s lawyer Enu Mainigi called his client “an honest and conscientious executive.”“It is unfair and unfounded for the SEC to point the finger at Ms. Tolstedt when her statements were not only true but also thoroughly vetted by others as part of Wells Fargo’s policies, procedures and systems of controls,” Mainigi said. “Ms. Tolstedt acted appropriately, transparently and in good faith at all times.  We look forward to setting the record straight and clearing her name.”Earlier this year, Wells Fargo paid $3 billion to settle several U.S. probes into its operations, including a $500 million deal with the SEC. The regulator said it will distribute money collected from Stumpf and the bank to investors.center_img – Advertisement – – Advertisement –last_img read more

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Women of Troy defeat Santa Clara 81-46 at home

first_imgCareer night · Redshirt junior guard Jordan Adams led the Women of Troy with a career-high 21 points and 12 rebounds in USC’s 81-46 win over Santa Clara on Monday night. The Trojans are 2-0. – Mariya Dondonyan | Daily TrojanIn their second game of the season, the Women of Troy beat Santa Clara by a score of  81-46 Monday night at the Galen Center.The team never fell behind the Gaels, and at one point boasted a 45-point lead over a team that could not stop the Trojans’ offensive onslaught.Redshirt junior guard Jordan Adams led the team in both scoring and rebounds, hitting eight of her 13 shots to score 21 points. Adams also hit three three-pointers in a game that she dominated in scoring and rebounding.Adams secured 12 rebounds on her way to the double-double. The game was Adams’s second straight double-double of the season. She also tied her career high in points.Three other Trojans notched double digits in scoring during Monday night’s matchup. Harvard graduate transfer Temi Fagbenle recorded her first double-digit scoring as a Trojan with 17 points.Freshman Aliyah Mazyck put another 14 points in the book for USC, and sophomore Kristen Simon added 11 points to go along with seven rebounds.The Trojans’ offense was unstoppable in part because of how many players were able to find the basket for USC. Both Adams and Mazyck were in double digits before the first half was over.The flow of the game was severely affected by the number of foul calls in a game in which each team was called for 27 fouls. The Trojans scored more points from the freethrow line than the field in the first quarter, and the team’s final nine points of the half also came from the stripe.By halftime, the Women of Troy were leading 48-17 behind 7-0 and 11-0 runs in the first and second quarters respectively.The offensive firepower did not stop for the Women of Troy after halftime, however, and the team opened with a 15-0 run. USC maintained their lead with the third period closing on a 67-31 score in favor of the Trojans.USC was outscored in the fourth quarter giving up 15 points while only scoring 14.The team will have nearly a week to rest and prepare for their next matchups as part of the Naismith Memorial Hall of Fame Challenge in Spokane, Washington. To open the holiday season, the team will have a Sunday afternoon game against Grand Canyon, a Monday night game against West Virginia, and a Tuesday night game against Gonzaga.last_img read more

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