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The Office of the Comptroller of the Currency (OCC) on Tuesday finalized penalties against three former Wells Fargo executives, ordering them to pay a total of $18.5 million for their involvement in the bank's infamous fake accounts scandal. The fines mark the end of long-running enforcement proceedings against the former executives, who are accused of failing to prevent or address misconduct tied to aggressive sales practices at Wells Fargo.

Michael Hsu, the OCC’s acting comptroller, issued final decisions that impose significant penalties on the three former executives: Claudia Russ Anderson, former senior risk officer for Wells Fargo’s retail banking division; David Julian, the bank’s former chief auditor; and Paul McLinko, who served as executive audit director.

Russ Anderson received the largest fine, totaling $10 million, while Julian was fined $7 million, and McLinko was penalized $1.5 million. In addition to her fine, Anderson was also banned from working in the banking industry. These penalties conclude an ongoing saga of investigations into Wells Fargo's fraudulent account practices, which spanned from 2013 to 2016.

The OCC’s final decision underscores the actions of Anderson, Julian, and McLinko during a period when it was revealed that Wells Fargo employees were opening unauthorized customer accounts to meet stringent sales targets. The misconduct was part of a larger scandal that led to billions of dollars in penalties and settlements for the bank, as it faced accusations of pressuring employees into unethical practices.

The three former executives are part of a broader group of Wells Fargo leaders who faced similar claims. These individuals were accused of failing to adequately address or even recognize the full scope of misconduct within the bank, allowing the fake accounts to proliferate for years. Wells Fargo, for its part, has admitted to widespread misconduct that involved the unauthorized creation of millions of customer accounts from 2002 to 2016, a practice driven by excessive sales pressures within the bank.

In 2022, OCC Administrative Law Judge Christopher McNeil recommended that Anderson, Julian, and McLinko face fines, stating that there was “sufficient cause” to support the penalties. These amounts were consistent with the OCC’s original request filed in early 2020. According to Judge McNeil, the three executives knew about the issues at the bank but chose to disregard them, sometimes even withholding vital information from the bank’s board and misleading regulators.