Wells Fargo & Co. has terminated a senior vice president who reportedly used a bank-owned $12 million beach house for personal parties and entertainment in an exclusive community in Malibu, Ca.
Wells Fargo has attempted to prevent a public
relations disaster by firing vice president Cheronda Guyton following reports that she used a luxurious beachfront Malibu home owned by the bank for
“eye-catching” private parties.
Bank spokeswoman Jennifer Langan confirmed that Cheronda Guyton, a senior vice president, was the only employee involved in the alleged violation of company policy.
“We deeply regret the activities that have taken place as they do not reflect the conduct we expect of our team members,” the bank said in a statement.
The previous homeowners, Lawrence and Linda Elins, turned over the 3,800-square-foot oceanfront-house to Wells Fargo in May.
Their real estate agent said they were financially wiped out by Bernard Madoff’s ponzi scheme and had to sign the property over to Wells Fargo to help pay a larger debt.
The home was not foreclosed and the bank agreed not to immediately sell it, Langan said.
Neighbors were interviewed and stated they saw Guyton’s family at the house and that it was used for at least one party where guests arrived by yacht.
The scandal is especially embarrassing given Wells Fargo’s acceptance of federal bailout money.