The commission is seeking a court order compelling Tolstedt to disgorge ill-gotten or unjust gains.
In a separate complaint against Stumpf, the SEC alleged that the former Wells Fargo chief executive signed and certified misleading statements regarding the bank’s cross-sell strategy and reported metric in 2015 and 2016.
Stumpf allegedly failed to ensure that the statements filed with the Commission were accurate after he notified that Wells Fargo was misleading the public about its performance metric.
In a statement, the SEC Division of Enforcement Director Stephanie Avakian said, “If executives speak about a key performance metric to promote their business, they must do so fully and accurately. The Commission will continue to hold responsible not only the senior executives who make false and misleading statements but also those who certify to the accuracy of misleading statements despite warnings to the contrary.”
Stumpf agreed to pay $2.5 million to settle the SEC complaint
According to the SEC, Stumpf decided to resolve the charges against him. He agreed to the Commission’s order requiring him to pay civil penalties of $2.5 million. He also agreed to stop committing or causing any future violation of the Securities Act.