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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Eight SoCal players swell recruiting class

first_imgMany of the high school juniors swore nothing was pre-planned, but by the time each left campus, UCLA coach Karl Dorrell had an unprecedented haul of recruits. Eight players, all from Southern California, gave non-binding oral commitments to be part of the Bruins’ 2008 recruiting class during a high-octane day of unofficial visits to the Westwood campus by some of the most talented players around. Also saying they would commit were Dorsey running back Jonathan Franklin, Culver City safety/receiver Antwon Moutra and Leuzinger of Lawndale linebacker Uona Kavienga. The eighth player to commit was Crenshaw receiver Kemonte Bateman, but his is not considered as strong as the other seven because of extenuating circumstances. Bateman, a dynamic player, received a verbal scholarship offer from UCLA, but is not expected to receiver a written offer for a while because he must clear significant academic hurdles to be admitted to UCLA, sources said. “Let’s just say he has a lot of work to do,” a source said. NCAA rules prohibit coaches from commenting about recruits until a binding signed national letter of intent is received, and signing day for these recruits is 11 months away. The group is led by defensive back Rahim Moore of Dorsey of Los Angeles, Compton defensive end Datone Jones, Colton defensive end Damien Holmes and Crespi of Encino safety E.J. Woods. “It really wasn’t planned,” Holmes said. “I went there just wanting to learn more about UCLA. They sold everything to me. (The coaches) told us all they would love for us to commit, but there really wasn’t that much pressure. People were just sold on it.” center_img The players gave kudos to Bruins defensive coordinator DeWayne Walker and recently hired receivers coach Eric Scott, who has strong ties to the inner city, for the recruiting haul. They said Bruins running backs coach Dino Babers, who is also the recruiting coordinator, also had a major impact on the day. “(The coaches) were talking, so I felt it,” Franklin said. “I was so comfortable there. It was my place. If there’s a chance I don’t make it to the NFL, by me going to that school, I’m going to be successful in life. I’m going to have a good job, make good money, take care of my family. It balances out.” Holmes said the day was pretty typical of an unofficial visit. The group of players took a tour, were presented with academic information, met collectively with Dorrell and individually with position coaches. “It just kind of happened,” said Holmes, who added he has offers from Nebraska, Duke, Mississippi. “It wasn’t like, `Hey, lets go in there together.’ I can’t speak for the other guys, but for me it was, `OK, let’s do it.’ But I guess we all felt the same way.” Moore, who had offers from Nebraska, USC, Auburn and Oregon, made 122 tackles and seven interceptions as a junior. He is listed by several recruiting services as the top defensive back in Southern California. Woods said he played Pop Warner football with Moore, Franklin and Jones, and they often talked about playing college football together. “I like that (UCLA’s coaches) sell academics before anything, and they guarantee a degree,” said Woods, who had 24 tackles five sacks last season. “They wanted a student-athlete. Other schools just wanted an athlete, and they didn’t even ask what my grades were. “I was going to wait it out because I’m just a junior, and Ohio State and Miami started showing me interest, but UCLA was the first school to recruit me. They offered me when I was a sophomore.” The commitments capped a week full of action for the football program, which received non-binding oral commitments from cornerback Aaron Hester of Compton Dominguez, receiver Jerry Johnson of Venice and defensive back Anthony Dye of Corona Santiago. brian.dohn@dailynews.com (818) 713-3607 160Want local news?Sign up for the Localist and stay informed Something went wrong. Please try again.subscribeCongratulations! You’re all set!last_img
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