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Business

Former Wells Fargo CEO Fined $17.5M For Sales Scandal

John Strumpf
Justin Ruckman
/
Flickr / Attribution 2.0 Generic (CC BY 2.0)
John Strumpf, shown in his 2009 photo, retired from Wells Fargo in 2016.

Federal regulators have slapped former Wells Fargo CEO John Stumpf with a $17.5 million fine for his role in the bank's sales practices scandal. 

They're also suing five other former Wells Fargo executives for a total of $37.5 million, for their individual roles in the bank's practices. This is the first time regulators have punished individual executives for Wells Fargo's wrongdoing.

The bank has paid hundreds of millions of dollars in fines and penalties for encouraging employees to open up millions of fake accounts in order to meet aggressive sales goals. 

Stumpf retired from Wells Fargo in 2016 amid revelations the bank pressured employees to open millions of bogus accounts to meet aggressive sales goals.