Ex-Wells Fargo auditors settle with bank regulator

A key U.S. banking regulator unveiled settlements with two former Wells Fargo & Co. auditors who were alleged to have ties to the bank's systemic sales-practice misconduct, according to a statement Friday.

The orders resolve actions the Office of the Comptroller of the Currency initiated against David Julian, former chief auditor, and Paul McLinko, former executive audit director. The regulator assessed a $100,000 civil money penalty against Julian and a $50,000 civil money penalty against McLinko.

A 2020 investigation by the OCC concluded that executives opened millions of unauthorized customer accounts, transferring funds without customer consent and lying to customers that certain products were available only as a package deal.

The regulator previously entered into consent orders with eight other former Wells Fargo executives related to systemic sales practices misconduct. The OCC said to date those actions have produced more than $43 million in penalties against the former bank officials.

The settlement comes as Wells Fargo is chipping away at legacy regulatory issues. The bank has made compliance and risk management its top priorities since Chief Executive Officer Charlie Scharf took the reins.

Wells Fargo remains under an asset cap imposed by the Federal Reserve that limits the lender's balance-sheet size. The firm's executives have been awaiting a decision from the Fed on whether they have done enough to get the restrictions lifted.