The Office of the Comptroller of the Currency said on Monday it had settled with three former Wells Fargo executives for their roles in the bank’s fake-account scandal.
The settlements include a $925,000 penalty to former Community Bank Group Finance Officer Matthew Raphaelson, a $400,000 fine to the former Head of Community Bank Deposit Products Group Kenneth Zimmerman; and a $350,000 penalty to the former Head of Community Bank Human Resources Tracy Kidd, the OCC said in a statement.
“As part of the settlements, each individual agreed to cooperate with the OCC in any investigation, litigation, or administrative proceeding related to sales practices misconduct at the bank,” the statement said.
In addition to the fines, Raphaelson agreed to a so-called “prohibition order” that bans him from working in banking again, and the other two executives agreed to a “personal cease and desist order” that prohibits certain behaviors, the OCC said.
In January, the OCC announced it settled with John Stumpf, the former Wells Fargo chairman and CEO, who agreed to a $17.5 million fine and a lifetime prohibition from working in the banking industry. Hope Hardison, the Wells Fargo former chief administrative officer and director of human resources, agreed to a “cease and desist” as well as a $2.25 million fine, and Michael Loughlin, the former chief risk officer for Wells Fargo also got a “cease and desist” order from the OCC and a $1.25 million fine.
Wells Fargo has weathered a series of scandals that began with the 2016 revelation that while Stump was CEO, branch employees opened millions of fake accounts to hit sales goals.
Stump’s mantra to employees was “eight is great,” meaning he wanted employees to cross-sell customers so they were using eight of the bank’s products. After employees began opening fraudulent accounts to meet the sales goals, the credit ratings of some customers took a hit.
In February, Wells Fargo agreed to a $3 billion settlement of criminal and civil charges that it signed customers up for credit cards they didn’t request, opened accounts in their names without permission, and even transferred money between accounts.
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