A former Wells Fargo senior manager just agreed to pay a $40,000 fine and walk away from the banking industry.
The Office of the Comptroller of the Currency (OCC) issues a consent order against former Wells Fargo senior manager Norman Desembrana for allegedly misleading customers, engaging in reckless, unsafe and unsound practices, and breaching his fiduciary duty to the bank.
The OCC finds that between October 2021 and March 4, 2022, Desembrana intentionally concealed the fact that the bank’s Philadelphia Lockbox was witnessing a significant backlog of unprocessed customer checks. According to the OCC, Desembrana failed to disclose the matter with his employer during meetings and instructed his supervised employees to generate false bank reports to conceal the number of overdue customer checks.
When customers complained, the OCC said Desembrana made misleading statements about the reason for the delays to appease bank customers and employees.
Says the OCC,
“Violations, practices or violations formed part of a pattern of misconduct and caused more than minimal loss to the Bank and damage to the interests of depositors.
Defendant’s misconduct demonstrated personal dishonesty, willful or persistent disregard for the safety and soundness of the Bank, and reckless disregard for the law or applicable regulations.”
Without admitting or denying the OCC’s findings, Desembrana agrees to pay a $40,000 civil penalty.
He also agrees to the OCC’s order never to work in the U.S. banking industry again unless he receives prior written approval from the regulator itself and from a financial firm willing to take over his services.
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