SEC charges former Wells Fargo CEO and top executive with misleading investors over sales practices

FILE PHOTO: Wells Fargo CEO John Stumpf testifies before a Senate Banking Committee hearing on the firm’s sales practices on Capitol Hill in Washington, U.S., September 20, 2016. REUTERS/Gary Cameron/File Photo

WASHINGTON (Reuters) – The Securities and Exchange Commission charged former Wells Fargo CEO John Stumpf and community bank chief Carrie Tolstedt with misleading investors, the watchdog announced Friday.

The agency claimed that the former executives misled investors about the widespread sales practice problems at the bank. Stumpf agreed to pay a $2.5 million penalty to settle the charges, while the SEC will litigate fraud charges against Tolstedt in court.

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