Wells Fargo Senior VP used forclosed home for family weekends...under investigation

Wells Fargo vows 'decisive action' in alleged use of Malibu mansion by an executive

The bank's strongly worded statement came as it faced a potentially embarrassing public relations imbroglio in the aftermath of reports that one of its senior executives had lived in the home that was surrendered by victims of Bernard L. Madoff's massive fraud.

"I almost fell out of my chair" when reading about the Wells Fargo allegations Friday morning, said Jerry Swerling, director of public relations studies at USC's Annenberg School for Communication. "That these folks could think this would not somehow become public astonishes me."

The Times reported this week that Cheronda Guyton, a Wells Fargo senior vice president responsible for foreclosed commercial properties, allegedly spent weekends this summer at the home with her family. The paper cited eyewitness reports from residents of the exclusive Malibu Colony gated community.

Guyton has not responded to phone calls or e-mails seeking comment.

In a statement, the bank said that its rules of conduct prohibited employees from "personal use of properties held by Wells Fargo." The company reiterated Friday that it had launched a full investigation into the allegations.

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Kevin Stein, associate director of the California Reinvestment Coalition, an advocacy group for low-income tenants, said the executive's alleged use of the Malibu house looked especially bad inasmuch as Wells Fargo and other banks often swiftly evicted renters from foreclosed houses to speed their resale.

"At the same time at least one bank executive was moving into a house in Malibu, I was imagining that scene a few miles away in the San Fernando Valley where people are getting kicked out because Wells Fargo says they have to put those houses back on the market immediately," Stein said.

http://www.latimes.com/business/la-fi-malibu-wells12-2009sep12,0,1526938.story

Wells Fargo exec used Malibu Colony home lost by Madoff-duped couple, neighbors say
A top bank executive was seen spending weekends and hosting parties in the $12-million beach house. The bank says it will 'conduct a thorough investigation of the allegations' by neighbors.

Bernard L. Madoff's massive fraud stunned some of the wealthy denizens of Malibu Colony, especially when a couple devastated by the scheme surrendered their oceanfront home to Wells Fargo Bank.

But some neighbors say the real shocker came when they saw one of the bank's top executives spending weekends in the $12-million beach house and hosting eye-catching parties there. What's more, Wells Fargo spurned offers to show the property to prospective buyers, a real estate agent said.

http://www.latimes.com/business/la-fi-malibu-wells11-2009sep11,0,740504.story